please solve the three of them
Cost of capital Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Additionally, the firm's marginal tax rate is 40 percent Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a s10 annual dividend. The cost of issuing and selling the stock 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 S1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was $1.50. It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. Q1- Calculate the specific cost of each source of financing 02. The firm's capital structure weights used in calculating its weighted average cost of capital are shown in the table below Hource of capital Weight ong term debt 20% Heferred stock 10% Tommon stock equity 70% Total 100% A- Calculate the single break point associated with the firm's financial situation. Hint this point results from exhaustion of the firm's retained earnings) B- Calculate the weighted average cost of capital associated with total new financing below the break point calculated in part (1) C. Calculate the weighted average cost of capital associated with total new financing above the break point calculated in part (1) 03. Which, if any, of the available investments do you recommend that the firm accept? Explain your answer. How much total new financing is required? (IRR) investment pportunity investment B C A F E 11 % 9.5% 12.9 16.5 11.8 10.1 10,5 $ 200,000 $ 300,000 $ 250,000 $ 400,000 $ 350,000 $ 600,000 $ 300,000