Questions 6 - 12 are based on the following data: A firm has determined its cost of each source of capital and optimal capital structure, which is composed of the following sources and target market value proportions: Source of Capital Long Term Debt Preferred Stock Common Stock equity Target Market Proportions After Tax Cost 45% 5% 10% 45% 14% 22% A firm has determined its optimal capital structure which is composed of the following sources and target market value proportions. Source of Capital Long Term Debt Preferred Stock Common Stock equity Target Market Proportions 20% 10% 70% Debt: The firm can sell a 12-year, P1,000 par value, 7 percent bond for P960. A flotation cost of 2 percent of the face value would be required in addition to the discount of P40. Preferred Stock: The firm has determined it can issue preferred stock at P75 per share par value. The stock will pay a P10 annual dividend. The cost of issuing and selling the stock is P3 per share. Common Stock: A firm's common stock is currently selling for P18 per share. The dividend expected to be paid at the end of the coming year is P1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago, the dividend was P1.50. It is expected that to sell, a new common stock issue must be underpriced P1 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. 6) The firm's before-tax cost of debt is 7) The firm's after-tax cost of debt is 8) The firm's cost of preferred stock is 9) The firm's cost of a new issue of common stock is 10) The firm's cost of retained earnings is 11) The weighted average cost of capital up to the point when retained earnings are exhausted is 12) The weighted average cost of capital after all retained earnings are exhausted is