Question 2: WACC Jackstone Company wants to raise $6 million for investing in a new outlet, which will give a 12% return on its investment. The money will be obtained from the sources identified in the table below at the identified rates. The company's corporate income tax rate is 40%. Note: The below values include payment of dividends and issue costs only. Calculate the weighted average cost of capital (WACC) for each financial source and total WAAC for Jackstone Company. Use Problem-Solving Example 9.2 in your textbook as reference, the table above as a template, and the following equations to calculate the cost column for each source of financing: [continued on next page] Bond cost: Before-tax costs x Company Income Tax Rate = tax deduction Before-tax cost - tax deduction = after-tax cost of Bond Common shares: Cost of common shares (dividends and issue costs only) + Growth rate = Total cost of common shares Preferred shares: No calculation, use value provided in question: Before-tax cost = Cost Retained Earnings Cost of retained earnings + Growth rate = Total cost of retained earnings