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Show All Your Work XYZ Company has the following capital structure. table [ [ Debt , 3 0 0 0 0 0 ] ,

Show All Your Work
XYZ Company has the following capital structure.
\table[[Debt,300000],[Preferred Stock,600000],[Common Stock,900000],[Retained Earnings,1200000]]
You have the following data, which should be relevant to your task.
Tax rate =35%
The face value of the preferred stock is 100, the dividend rate is 9% and the current market price is 90.
The common stock price is 50 and the current dividend (D0) is 3.5 which is expected to grow at a rate of 5%
The current interest rate is 12%.
Based on these data, answer the following questions:
\table[[Q,The cost of debt =,],[1,The cost of preferred stock =,],[2,The cost of the common stock =,],[3,The cost of retained earnings =,],[4,The WACC =,],[5,,]]
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