SUNSHINE Corporation is estimating its WACC. Its target capital structure is 30 percent debt, 10 percent preferred stock, and 60 percent common equity. Its bonds have a 11 percent coupon, paid semiannually, a current maturity of 25 years, and sell for $1,050. The firm could sell, at par, $100 preferred stock which pays a 10 percent annual dividend, with flotation costs of 3 percent. Sunshine ' beta is 1.3, the risk-free rate is 10 percent, and the market risk premium is 5 percent. SUNSHINE is a constantgrowth firm which just paid a dividend of $1.20, sells for $20.00 per share, and has a growth rate of 4 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk premium method to find rs. The firm's marginal tax rate is 38 percent. 1) What is the firm's component cost of debt? 2) What is the firm's cost of preferred stock? 3) What is the firm's cost of common stock (rs) using the CAPM approach? 4) What is the firm's cost of common stock (rs) using the DCF approach? 5) What is the firm's cost of common stock using the bondyield-p|us-riskpremium approach? 6) What is the firm's WACC (assume using CAPM to find out cost of equity)