the market price is $975 for the bonds, $ for the preferred stock, and $21 for common stock. flotation costs are 9% for bonds and 5% for preferred stock. the firm's tax rate is 46%. common stock will pay a $2.80 dividend which is not expected to grow.

a. calculate the weighted cost of the capital using only internal common equity.

b. Why do we need to determine the firm's overall weighted cost of capital and not just the individual component cost of capital?