Please show the calculations

Sun Microsystems Technologies (SMT) is considering a major expansion program that has been proposed by the companys information technology group. Before proceeding with the expansion, the company must estimate its cost of capital. Suppose you are an assistant to Scott Hetzer, the financial vice president. Your first task is to estimate SMTs cost of capital. Hetzer has provided you with the following data, which he believes may be relevant to your task. 1. The firms tax rate is 40%. 2. The current price of SMTs 14% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,137.65. SMT does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. 3. The current price of the firms 10%, $100.00 par value, quarterly dividend, perpetual preferred stock is $117.65. 4. SMTs common stock is currently selling for $50.00 per share. Its last dividend (D0) was $4.50, and dividends are expected to grow at a constant annual rate of 5% in the foreseeable future. SMTs beta is 1.2, the yield on T-bonds is 6%, and the market risk premium is estimated to be 7%. For the bond-yield-plus-risk-premium approach, the firm uses a risk premium of 2.5%.

SMTs target capital structure is 30% debt, 10% preferred stock, and 60% common equity.

a. What is the market interest rate on SMTs debt and its component cost of debt (after-tax cost)?

b. What is the firms cost of preferred stock?

c. What is SMTs estimated cost of common equity using the CAPM approach?

d. What is the estimated cost of common equity using the DCF approach?

e. What is the bond-yield-plus-risk-premium estimate for SMTs cost of common equity?

f. SMT estimates that if it issues new common stock, the flotation cost will be 15%. SMT incorporates the flotation costs into the DCF approach. What is the estimated cost of newly issued common stock, considering the flotation cost?

g. What is SMTs overall, or weighted average, cost of capital WACC? Ignore flotation costs.

h. What factors influence SMTs composite WACC?