the last question) Debt 20 bonds with 8 % coupon rate. payable annually, $1.000 par value. 15 years to maturity, selling at $970 per bond. 500 shares of common stock outstanding. The stock sells for a price of 5112 per share and has a beta of 1.6 Common Stock Preferred Stock 110 preferred shares outstanding, currently trading at $120 per share: with an annual dividend payment of $7 Market The market risk premium is 9% and the risk free rate is 296 Tax Rate 2196 Preferred Stock 110 preferred shares outstanding, currently trading at 5120 per share with an annual dividend payment of $7 Market The market risk premium is 996 and the risk free rate is 29 Tax Rate 2196 What is the cost of common equity? (You may not need all the information from above to answer this question) D. (1+9) Cost of common equity: K. +9 Po Return or Cost of common equity: E() = r; +[E(X) - r Dps Cost of Preferred Stock: Ty Value of Preferred Stock WACC = W.K.(1-T) + W. *Kes + W. * Kp. 16.40% 18.36% 15.10 % 10.90 %