Question 1 34 pts What is the cost of retained earnings? (no floatation costs) Using dividend growth model? Use the following information to calculate each component of the weighted average cist if capital use the following information as appropriate Marginal corporate tax rate: 25% Bonds with $1,000 face value with a 8% coupon rate with semi-annual payments matures in 10 years now sells $1148.77 for Preferred stock dividend $3.00 $55,00 $2.00 Preferred stock price Current common stock dividend per share Price per share of common stock Floatation cost to sell new common stock Forecast rate of growth for corporation $20.00 10% 3% Risk free interest rate 3% Market rate of return 8% Beta for firm 1.4 Please calculate the cost of each component and then calculate the weighted average: a. After tax cost of debt (5 points) b. Cost of Preferred Stock (4 points) c. Cost of Retained Earnings (Dividend growth model) (5 points) d. Cost of Retained Earnings (CAPM) (5 points) e Cost of Common Stock (Dividend growth model) (5 points) f. Weighted average of component cost to get WACC (10 points)