- The firm's tax rate is 35%. - The current price of Harry Davis' 125% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $. Harry Davis does not use short-term interestbearing debt on a permanent basis. New bonds would be privately placed with no flotation cost. - The current price of the firm's 10%,$100 par value, quarterly dividend, perpetual preferred stock is \$. Harry Davis would incur flotation costs equal to 6% of the proceeds on a new issue. - Harry Davis' common stock is currently selling at $70 per share. Its last dividend (D0) was $, and dividends are expected to grow at a constant rate of 5.8% in the foreseeable future. Harry Davis' beta is 1.4, the yield on T-bonds is 5.6%, and the market risk premium is estimated to be 6%. For the own-bond-yield-plus-judgmental-risk-premium approach, the firm uses a 3.2% risk premium. - Harry Davis' target capital structure is 30% long-term debt, 10\% preferred stock, and 60% common equity. Greep 3. Hond price =1150.25 - Preferred stock-167.\$4-D0-3.12 1. What sourees of eapilal should be iachuded when you estimate lfarry Davis' weighed average cest of eapirat? 2. Sliould the coseponcet costs be figured on a beforc-tax or an after-fax basis? Why