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please solve all the qustions 1. A firm's marginal tax rate is 40 percent. The firm has determined its optimal capital structure, which is composed

please solve all the qustions
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1. A firm's marginal tax rate is 40 percent. The firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions, as follows: Debt: The firm can sell a 12-year, $1,000 par value bond that pays a coupon rate of 7 percent for $1,000. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock (flotation cost) is $3 per share. Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.70 and to grow at a constant rate of 5% in the future. To sell a new common stock issue, it must be underpriced by $1 per share in floatation costs. a) What is the firm's before-tax cost of debt? (0.75 Mark) b) What is the firm's after-tax cost of debt? ( 0.75 Mark) c) What is the firm's cost of preferred stock? (0.75Mark) d) What is the firm's cost of a new issue of common stock? (0.75 Mark) e) What is the firm's weighted average cost of capital? ( 0.75 Mark)

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