Question A7-Cost of Capital (10 marks) - A7. Given the following information for Hung & Wong Transport, find the cost of capital. Assume the company's tax rate is 35 percent Debt: 7,500, 8.4 percent coupon bands outstanding. $1,000 par value, 22 years to maturity, selling for 103 percent of par, the bonds make semiannual payments.. + I Common stock: 195,000 shares outstanding, selling for $78 pershare, beta is 1.21.1 Preferred stock: 11,000 shares of 6.35 percent preferred stock outstanding, currently selling for $76 per share.. + Market: 8 percent market risk premium and 5.1 percent risk-free rate. ! . i) Calculate the market value of common stock, preferred stock, band and the total market value of the firm. (2 marks) ii) Calculate the cost of common stock. (1 mark) iii) Calculate the cost of preferred stock. (1 mark)