PROBLEMS $($Decimals to four points, show and label work$)$

The Luigi Laugna Company is calculating its WACC. Use the following to determine it$.$

$$ Debt: $20-$year bonds: $25000$ outstanding with a $6\mathrm{.}0\%$ coupon semi$-$annual: $$1,000$ face value bonds; $15$ years remain to maturity. Quoted price of $102\%.$

Common Stock: $500,000$ shares outstanding: Beta $=1\mathrm{.}10$: selling for $$60$ per share.

$\backslash$deg Preferred Stock: $40,000$ shares of $5\mathrm{.}30\%$ preferred stock outstanding: par value $$100$; currently trading at $$95$ per share.

Market: Market risk premium is $7\%$; risk$-$free Treasury rate is $3\mathrm{.}0\%.$

Appropriate corporate far rate is $30\%$

Calculate the relevant costs for each financing component and the firm's WACC

$($a$)$ Cost of Debt:

$($b$)$ Cost of Common:

$($c$)$ Cost of Preferred:

$($d$)$ WACC:

$2/2$