ABC's outstanding 5% coupon rate bonds mature in 10 years, and are selling for $900. The...

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Finance

ABC's outstanding 5% coupon rate bonds mature in 10 years, andare selling for $900. The bonds make annual coupon payments.
ABC preferred stock pays $2.00 dividend per share and sells for$50 per share.
ABC common has a beta of 1.1, the risk free rate is 3% and theexpected return on the market is 8%.
ABC's optimal capital structure is 30% debt, 10% preferredstock, and 60% common equity. Tax rate is 40%.
Would you show how you calculate the following:
a. after-tax cost of debt = 3.8% I have the equation rd (1-T)but not sure what rd would be?
b. preferred stock = 4% I have the equation, rps = dividend onpreferred stock/value of preferred stock but not sure if this iscorrect and what to plug in?
c. common stock = 8.5%
d. WACC = 6.6% I have the equation but not sure what each is toinsert in the equation: wdrd(1-T) + wprp + wsrs

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ABC's outstanding 5% coupon rate bonds mature in 10 years, andare selling for $900. The bonds make annual coupon payments.ABC preferred stock pays $2.00 dividend per share and sells for$50 per share.ABC common has a beta of 1.1, the risk free rate is 3% and theexpected return on the market is 8%.ABC's optimal capital structure is 30% debt, 10% preferredstock, and 60% common equity. Tax rate is 40%.Would you show how you calculate the following:a. after-tax cost of debt = 3.8% I have the equation rd (1-T)but not sure what rd would be?b. preferred stock = 4% I have the equation, rps = dividend onpreferred stock/value of preferred stock but not sure if this iscorrect and what to plug in?c. common stock = 8.5%d. WACC = 6.6% I have the equation but not sure what each is toinsert in the equation: wdrd(1-T) + wprp + wsrs