SECTION B 1. Naa & sons have the following capital structure, which they consider to be optimal: Debt 25%, preferred stock 15% and equity 60%. Its established dividend payout ratio is 30%, the tax rate is 40% and investors expect earnings and dividend to grow at a constant rate of 9% in the future. Naa paid a dividend of Ghc3.60 per share last year and its stock sells at a price of GHc54 per share. Naa can obtain new share. Debt can be sold at an interest rate of 12%. Required: a determine the cost of each capital structure component b. Naa's Weighted Average Cost of Capital (WACC) e. Bizhub finds out that a company he is interested in investing his funds has a beta of 1.58% and that over the past five years, the Treasury Bill rate has averaged 15% while the average annual return on the SECTION B 1. Naa & sons have the following capital structure, which they consider to be optimal: Debt 25%, preferred stock 15% and equity 60%. Its established dividend payout ratio is 30%, the tax rate is 40% and investors expect earnings and dividend to grow at a constant rate of 9% in the future. Naa paid a dividend of Ghc3.60 per share last year and its stock sells at a price of GHc54 per share. Naa can obtain new share. Debt can be sold at an interest rate of 12%. Required: a determine the cost of each capital structure component b. Naa's Weighted Average Cost of Capital (WACC) e. Bizhub finds out that a company he is interested in investing his funds has a beta of 1.58% and that over the past five years, the Treasury Bill rate has averaged 15% while the average annual return on the