The ABC Corporation has reported earnings available to common stockholders of $4,200,000 last year. The following information applies to the company. Dividend (preferred stock) $2.00 # of outstanding shares 1,000,000 Market price of Common stock $40.00 Growth rate 6% Flotation on new common stock $7.00 Current Dividend (common stock) $1.26 Market price of Preferred stock $25.00 Flotation on Preferred stock $3.00 Par value (debt) $1,000 Coupon rate 10% term 5 years Current price of bond $1,200 flotation $25.00 per bond Tax rate 40% The current Balance sheet for the firm indicates the following: Long-term debt $6,000,000 Preferred stock $1,500,000 Common Equity $7,500,000 Cost of Debt-6% Cost of Preferred Stock - 8% Cost of Common Equity - 9.30% Cost of New Common Equity - 10% Questions A)What is the WACC before breaks? B)What is the breakpoint? C) What is the MCC, (after breakpoint)? The ABC Corporation has reported earnings available to common stockholders of $4,200,000 last year. The following information applies to the company. Dividend (preferred stock) $2.00 # of outstanding shares 1,000,000 Market price of Common stock $40.00 Growth rate 6% Flotation on new common stock $7.00 Current Dividend (common stock) $1.26 Market price of Preferred stock $25.00 Flotation on Preferred stock $3.00 Par value (debt) $1,000 Coupon rate 10% term 5 years Current price of bond $1,200 flotation $25.00 per bond Tax rate 40% The current Balance sheet for the firm indicates the following: Long-term debt $6,000,000 Preferred stock $1,500,000 Common Equity $7,500,000 Cost of Debt-6% Cost of Preferred Stock - 8% Cost of Common Equity - 9.30% Cost of New Common Equity - 10% Questions A)What is the WACC before breaks? B)What is the breakpoint? C) What is the MCC, (after breakpoint)