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Cost of capltal Edna Recording Studios, inc, reported earnings avalable to common siock of 54,600,000 last year. From these eamings, the cempany paid a dividend of 51.26 on each of is 1,000,000 common shares outstanding. The coptal structure of the company includes 30% debe 20% preferted stock, and 50% cominen stock. it is tised at a rale of 21% a. It the market price of the common ssock is $39 and dividends are expected to grow at a fale of sw per year sor the foreseeable fit ire, what is the compacy's goif of retahed eamngy inancing? b. If undorpricing and fotaton costs on new shares of commen stock amount to is per share, what is the compoty's coaf of new common slock financingt. c. The company can issue 51.64 dividend peoferred stock lor a market price of 529 per shate. Flotaton cost would aenount to 52 per share. What is the cost of arohered slock ftanchg? d. The compony can issue $1,000-pativalow, 11% annwal coupon, B-year bonds that can be soid for $1.250 each. Flotafion cosis would anourt io 535 per bend. What is ite afler las cost of debe Enaneing? 6. What is the WACC? (Renind to two decimal paces) (Round lo two decimal daces) Wi. Bhound to towo decimal elares? Using the cost of new common siock, fo, the frens Wucc,fa, is 5. (Aound to taro decmia places)

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