PY- Similar 10) Calculation of individual costs and WACC Dion Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weight 40% long term debit 10% preferred stock and 50% common stock equity retained earnings new common stock, or both The firm's tax rate is 28% Debt The firm can sell for $1000 a 19 year $1.000 par vakbond paying annual invata 9.00% coupon rate Aflotation cost of 35% of the par value is required Preferred stock 1000% annual dividend preferred stock having a par value of $100 can be sold for 590 An additional fee of $2 per share must be paid to the underwers Common Mock The firm's common stock is currently selling for 350 per share. The stock has paid a dividend that has gradually increased for many years, rising from $200 ton years ago to the $358 dividend payment that the company just recently made the company wants to b e now new common stock, it will them 51 50 below the current market price to inwestors, and the company will pay $250 per share infotation costs a. Calculate the tax cost of debt b. Calculate the cost preferred stock Calculate the cost of common stock both retained carings and new common stock) d. Calculate the WACC for Dillon Labs a. The after tax cost of debt using the band's yield to m y (VT) s o und to two decimal places) Enter your answer in the answer box and then click Check Answer 6 mg parts Clear All Check