Srowth Company's current share price is $19.85 and it is expected to pay a $1.20 dividend per share next yoat. After that, the firm's dividends are expected to grow at a rate of 3.7% per year. 1. What is an estimate of Growth Company's cost of equity? 3. Growth Company also has preferred elock outstanding that pays a $2.25 per share fixed dividend. If this stock is currently priced at $27.90, what is Growth Company's cost of preforred stock? 2. Growth Company has existing debt issued three years ago with a coupon rate of 5.6%. The firm just issued new dobt at par with a coupon rate of 6.6%. What is 6 romen Company's prefax cost of debt? d. Growth Company has 4.7 million common shares outstanding and 1.3 millon prelerred shares outstanding, and its equity has a total book value of $49.9 milion. Its liabilites have a market value of $20.5 milion. If Growth Company's common and preferred shares are pricod as in parts (a) and (b), What is the maket value of Growth Company's assets? e. Growh Company taces a 21% tax rate. Given the information in parts (o) through (d), and your answors to those problems, what is Growth Company's WACC? Note: Assume that the firm will ahways be able to vtilize its ful intorest tax shield. The cost of caplal for prefered stock is A.06 \%. (Found to two decimal places) e. Growth Company has existing debt insued theen years ago with a coupon rame of 5.6%. The firm just issued new debt at par with a coupon rate of 0.6s. What is Groweh Companys cost of debt? (Select trom the drop-dewn menus.) The pee-tix cost of debt is the firmis YrM on curfent debt. Since the firm recently issued debt at par, then the coupon rape of that debe must be pre-tax cost of debt is 6.6%. I value of 80.5 milion. Hf Gropth Conpany's compon and petered sharet are priced as in parts (a) and (b) what is the manket value of crowaln Compacys assets? The makal value of aspes is 5150.07 miltion. (Rhound to two decimal placesi) The weighted average cast of caphat is (4. (Round to twe decimal places)