Q21. (15 points) Dunkin Donuts Capital Structure is as follows: Debt:12000 bonds. Each sells for S1 171.19, with 10 % coupon rate, S1 ,000 face value, 15 years to maturity; the bonds make annual coupon payments. The company is in the 30% tax bracket. Preferred Stock: 10,000 shares of preferred stock outstanding, preferred stock currently sells for $20/share. The preferred stock is expected to pay a perpetual $1.80 dividend per share each year forever Common Stock: 15,000 shares of common stock outstanding, sells for $40/share. The stock is expected to pay a constantly growing perpetual dividend per share, starting with $2.40 at tel and growing by a constant rate of 5% per year thereafter. (a) what is the before-tax cost of debt for Dunkin Donuts? If the company is in the 30% tax bracket, what is its after-tax cost of debt? (b) Calculate the cost of preferred stock for Dunkin Donuts. (c) Calculate the cost of common stock for Dunkin Donuts. 2 (d) Calculate WACC (cost of capital) for Dunkin Donuts