Question $(1)$: Cost of capital.

The following represents the balance sheet of a corporation $($XYZ$).$

common stocks, the expected dividends is $$10,$ and growing at a constant rate of $7\%,$ the current market

price is $$250,$ the floating cost is $2\%.$

preferred stocks pay $15\%$ dividends, the current market price is $$132,$ par value of $$100.$ And $2\%$ floating

cost$,$

The risk$-$free rate is $6\%,$ the market return is $12\%,$ and beta is $1\mathrm{.}5$ times.

The nominal cost of debt is $8\%,$ and the tax rate is $25\%.$

Given the above information, calculate the weighted average cost of capital $($WACC$)$