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Question Help Cost of capital Edna Recording Studios, Inc., reported earnings available to common stock of $4,000,000 last year. From those earnings, the company paid a dividend of $1.27 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 36% debt. 20% preferred stock, and 45% common stock. It is taxed at a rate of 28%. a. If the market price of the common stock is $44 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, what is the a. If the market price of the common stock is $44 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, the company's cost of retained earnings financing is %. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. Clear All 5 parts remaining 112 AM 4/17/2021 e Type PS Question Help b. If underpricing and flotation costs on new shares of common stock amount to $9 per share, what is the company's cost of new common stock financing? c. The company can issue $1.83 dividend preferred stock for a market price of $25 per share. Flotation costs would amount to $2 per share. What is the cost of preferred stock financing? d. The company can issue $1,000-par-value, 7% coupon, 5-year bonds that can be sold for $1,280 each. Flotation costs would amount to $35 per a. If the market price of the common stock is $44 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, the company's cost of retained earnings financing is %. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer Check Am Clear All 5 parts remaining 13 AM 4/170027 pType P 10 per share. What is the cost of preferred stock financing? d. The company can issue $1,000-par-value, 7% coupon, 5-year bonds that can be sold for $1,280 each. Flotation costs would amount to $35 per bond. Use the estimation formula to figure the approximate after-tax cost of debt financing? e. What is the WACC? a. If the market price of the common stock is $44 and dividends are expected to grow at a rate of 7% per year for the foreseeable future, the company's cost of retained earnings financing is_%. (Round to two decimal places. Enter your answer in the answer box and then click Check Answer Check Clear All 5 parts remaining 1:13 AM 4/17/2021 O TV 0 Y R E

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