Question 2 . Given the following information, calculate the firm's WACC using new common equity. . Target capital structure: 35% debt, 10% preferred, 55% common equity Required return on preferred stock: 10% Before-tax cost of debt: 8% Current common stock price: $40 Next year's dividend on common stock: $2.50 Growth rate (constant): 5% Flotation cost: 6% Marginal tax rate: 25% 9.53% 8.73% 7.99% 9.29%