QUESTION TWO Flaherty Electrie has a capital structure that consists of 70 perce of SA percent company's long-term bonds have a before-tax yield to ma cent equity and 30 percent debts The t. The company at uses the $45 per share. The year-end dividend (Di) is expected to e The compan'y esto new comued average grow forever at a constant rate o new common stock to help fund this y rad s speeted to cost of equity. Flaherty's common stock currently trades f 7 percent a vear. The es sd (D) is expected to be $2.50 per share, and the dividend is ex company estimates that it will have to issue issued is r's projects. The flotation cost on new common stock percent and the company's tax rate is 40 percent. What is the co capital, WACC? 9,09). io,43% h 10 nercent debt (all long-term bonds) and TION THREE