di dend of $1.28 on ach o its 1 000 000 common shares outstanding. The capital structure of he compan Cost o capital Edna Recording Studios, c report d r ngs ? labie 10 con on stock of S4 800,000 last yoar. From those earnings, the company paid includes 30% debt, 20% preferred stock, and 50% common stock. It is taxed at a rate of 30%. a. If the market price of the common stock is $48 and dividends are expected to grow at a rate of 8% per year for the foreseeable future what s the company's cost of ela ned earings financ ng b. If underpricing and flotatian costs on new shares of common stack amount to $7 per share, what is the company's cost of new common stock financing? c. The company can issue S1.99 dividend preferred stack for a market price of $26 per share. Flotation costs would amount to $5 per share. What is the cost of preferred stock financing d. The company can issue S1,000 par value, 7% coupon 6-year bonds hat can be sold or S1 260 each. Flotation costs would amount to S20 per bond Use the est nation formula o gure the approximate a er-tax cost o deb! financng e. What is the WACC? a. If the market price of the common stock is $48 and dividends are expected to grow at a rate of 8% per year for the foreseeable future, the company's cost of retained eamngs finanong is % Round to wo der places