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Please answer N,O & P.. Thank you! . The firm's tax rate is 40%. The current price of lana's 12% coupon, semiannual payment, noncallable bonds

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Please answer N,O & P..

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. The firm's tax rate is 40%. The current price of lana's 12% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1.153.72. Jana does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. The current price of the firm's 10%. $100 par value, quarterly dividend, perpetual preferred stock is $116.95. Jana would incur flotation costs equal to 5% of the proceeds on a new issue. Jana's common stock is currently selling at $50 per share. Its last dividend (D) was $3.12, and dividends are expected to grow at a constant rate of 5.8% in the foreseeable future lana's beta is 1.2, the yield on T-bonds is 5.6%, and the market risk premium is estimated to be 6%. For the own-bond-yield-plus-judgmental-risk-premium approach, the firm uses a 3.2% risk premium. lana's target capital structure is 30% long-term debt, 10% preferred stock, and 60% common equity. To help you structure the task. Leigh Jones has asked you to answer the following questions, a. (1) What sources of capital should be included when you estimate Jana's weighted thinking about the new division's cost of capital n. Explain in words why new common stock that is raised externally has a higher percentage cost than equity that is raised internally by retaining earnings. 0. (1) Jana estimates that if it issues new common stock, the flotation cost will be 15% Jana incorporates the flotation costs into the dividend growth approach. What is the estimated cost of newly issued common stock, taking into account the flotation cost? (2) Jana issues 30-year debt with a par value of $1,000 and a coupon rate of 10%, paid annually. If flotation costs are 2%, what is the after-taxt of debt for the new bond issue? p. What four common mistakes in estimating the WACC should Jana avoid

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