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Question Help y Calculation of individual costs and WACC Dillon Labs has asked its financial manager to measure the cost of each specific type of capital as well as the weighted average cost of capital. The weighted average cost is to be measured by using the following weight: 30% long-term debt, 20% preferred stock, and 50% common stock equity (retained earnings, new common stock, or both). The firm's tax rate is 22% Debt The firm can sell for 51010 a 15-year, 51,000-par-value bond paying annual interest at a 9.00% coupon rate. A flotation cost of 4% of the par value is required Preferred stock 7.00% (annual dividend) preferred stock having a par value of $100 can be sold for $88. An additional fee of 54 per sharo must be paid to the underwriters Common stock The firm's common stock is currently seling for $90 per share. The stock has paid a dividend that has gradually increased for many years, rising from $3.00 ten years ago to the 54.89 dividend payment. Do that the company just recently made if the company wants to issue new new common stock, it will sell them $2.00 below the current market price to attract investors, and the company will pay $2.00 per share in flotation costs, The after-tax cost of debt using the bond's yield to maturity (YTM) % (Round to two decimal places.) 10 inter your answer in the answer box and then click Check Answer the company will pay a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock. c. Calculate the cost of common stock (both retained earnings and new common sto d. Calculate the WACC for Dillon Labs. a. The after-tax cost of debt using the bond's yield to maturity (YTM) is %. (Round

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