solve part d and e

Cost of capital Edna Recording Studios. Inc., reported earnings available to common stock of $5,000,000 last year. From those eamings, the company paid a dividend of 31.35 on each of its 1.000.000 common shares outstanding. The capital structure of the company includes 25% debt. 25% preferred stock, and 50% common stock It is taxed at a rate of 21%. a. If the market price of the common stock is $40 and dividends are expected to grow at a rate of 9% per year for the foreseeable future, what is the company's cost of retained earnings financing? b. If underpricing and flotation costs on new shares of common stock amount to $6 per share, what is the company's cost of new common stock financing? c. The company can issue $1.85 dividend preferred stock for a market price of $27 per share. Flotation costs would amount to $2 per share. What is the cost of preferred stock financing? d. The company can issue $1,000-par-value. 7% annual coupon, 14 -year bonds that can be sold for $1,180 each. Flotation costs would amount to $30 per bond. What is the after-tax cost of debt financing? e. What is the WACO? a. If the market price of the common stock is $40 and dividends are expected to grow at a rate of 9% per year for the foreseeable future, the company's cost of retained earnings financing is 12.678%. (Round to two decimal places.) b. If underpricing and flotation costs on new shares of common stock amount to $6 per share, the company's cost of new common stock financing is 13.3%. (Round to two decimal places.) c. If the company can issue $1.85 dividend preferred stock for a market price of $27 per share, and flotation costs would amount to $2 per share the cost of preferred stock financing is 7.4%. (Round to two decimal places.) d. If the company can issue $1,000-par-value, 7% coupon, 14-year bonds that can be sold for $1,180 each, and flotation costs would amount to $30 per bond. the after-tax cost of debt financing is (Round to two decimal places.)