Solar Flare Fireworks wants to determine Weighted Average Cost of Capital The company has issued $3,000 par bonds selling for $3,270 with a coupon rate of 5% paid semiannually with 5 years to maturity. The flotation cost is $150 a bond The company issued 5% coupon rate preferred stock with a par value of 1,000 and a flotation cost of $50 which sells for $550 The company has a 20% tax rate and the following information is available for common stock CAPM Data: Beta is 1.2 risk free rate is 2% and the expected market return is 12% The company has $20 million of debt, $10 million of preferred stock and $10 million of existing stock. (a) What is the current Weighted Average Cost of Capital? (b) If the company were to issue $20 million of new stock what would be the Weighted Cost of Capital