the firm's tax rate is 40% the current price of Jana's 12%coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,153.72. Jana does not use short term Interest-bearing 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 $116.95. Jana would incur flotation costs equal to 5% of the proceeds on a new issue Jana's common stock is currently selling at $50 per share. it's last dividend was $3.12, and dividends are expected to grow at a constant rate of 5.8% in the foreseeable future. Jana's beta is 1.2 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 Jana's target capital structure is 30% lo long term debt, 10% preferred stock and 60% common equity

questions...please show work 1. what sources of capital should be included when you estimate Jana's weighted average cost of capital? 2. Should the component cost be figured on a before-tax or after-tax basis? 3. Should the cost be historical (embedded) costs or new (marginal) costs? 4.What is the market interest rate o. Jana's debt, and what is the component cost of this debt for WACC purposes? 5.What is the firm's cost of preferred stock? 6. Jana's preferred stock.is riskier to investors than its debt, yet the preferred stocks yield to investors is lower than the yield to maturity on the debt. Does this suggest you have made a mistake?(hint think about taxes) 7. what are the two primary ways companies raise common equity? 8. why is there a cost associated with reinvested earnings? 9. Jana doesn't plan to issue new shares of common stock. Using the CAPM approach, what is Jana's estimated cost of equity?