Growth? Company's current share price is $ 20.30 and it isexpected to pay a $ 1.10 dividend per share next year. After? that,the? firm's dividends are expected to grow at a rate of 3.6 %peryear.

a. What is an estimate of Growth? Company's cost of? equity?

b. Growth Company also has preferred stock outstanding that paysa $ 2.00 per share fixed dividend. If this stock is currentlypriced at $ 28.25 what is Growth? Company's cost of preferred?stock?

c. Growth Company has existing debt issued three years ago witha coupon rate of 6.5%.The firm just issued new debt at par with acoupon rate of 6.8%. What is Growth? Company's cost of? debt?

d. Growth Company has 4.6 million common shares outstanding and1.5 million preferred shares? outstanding, and its equity has atotal book value of $ 50.1 million. Its liabilities have a marketvalue of $ 20.1 million. If Growth? Company's common and preferredshares are priced as in parts ?(a?) and ?(b?), what is the marketvalue of Growth? Company's assets?

e. Growth Company faces a 38 % tax rate. Given the informationin parts ?(a?) through ?(d?), and your answers to those? problems,what is Growth? Company's WACC?

?Note: Assume that the firm will always be able to utilize itsfull interest tax shield.