QUESTION 11 20 points Save Answer The following company has the following capital structure. Suppose the stock price is $20, there are 1 million shares of stock, the firm has $5 million of preferred stock, and $75 million of debt. The federal-plus-state tax bracket is 40%. a. The long-term debt consists of 20-year, annual bonds with a coupon rate of 8%. Its current price is $1000.00. Calculate the cost of the long-term debt. (5 points) b. The company pays the preferred stock dividend of $15. The preferred stock has a price of $100, and the company incurs a 4% flotation cost. Calculate the cost of preferred stocks. (5 points) c. The company's beta is estimated to be 1.5. The risk-free rate is 4%, and the market risk premium is 6%. Using CAPM, calculate the cost of equity. (5 points) d. Given the firm's capital structure, calculate the firm's WACC. (5 points)