Question 2 12 points Shaikha, the Vice-President, Finance of WB Resorts is calculating cost of capital for the company to use in a Capital budgeting Decision. She has given you the following information and has asked you to compute the weighted average cost of capital The company currently has 365 bonds with 5 years maturity and 9% coupon rate. The company pays semi-annual interest. The par value per bond is $1,000 and it is currently selling for $1020. The company is in the 40% tax bracket. The company has 925 preferred stock outstanding selling at a market price of $98. The company pays a dividend of $4 per share on its preferred stock. The flotation costs are expected to be $3. The common stock of the company is currently selling for $ 12 per share. The company expects to pay a dividend of $ 0.5 per common share next year. Market analysts have forecast a rate of 2% per year growth in dividends. The number of common stock outstanding are 18,750. Required: Calculate After-tax cost of Debt (2 marks) Il Cost of Preferred Stock (2 marks) Il Cost of Common Stock (2 marks) iv. Market values of capital structure (3 marks) v. Weighted Average Cost of Capital (3 marks) 1 BA Paragraph TTTT Arial T # 3 (12pt) THE MacBook Pro