Smart Bumpkins Company has determined its optimal capital structure and information to find the after-tax cost. It is listed below. Please round all answers to 2 decimal places change decimals to percent as needed and go out two more decimal places.

Sources Weights Costs Weighted Costs

Long Term Debt 40% ______ ______________

Preferred Stock 10% ______ ______________

Common Stock 50% ______ ______________

= WACC

What is the companys Cost of Debt if their bonds are selling for $1003, have a coupon rate of 4.2% and flotation costs of $20. They mature in 5 years and the company is in the 40% tax bracket.

What is the companys Cost of Common Stock if the dividends are as listed below, the current price of the stock is $15 and flotation costs are 8% of the current price?

2010 $.95

2009 $.92

2008 $.91

What is the companys Cost of Preferred Stock if the company pays a dividend of $32 and the stock currently sells for $812. The flotation costs associated with the stock are 12% of the current price.

Utilizing the various costs, what would be the companys WACC?

What would be the companys RADR for new projects if the risk-free rate is 5%and the risk factor for new projects () is 1.4? (Note: use RADR to find NPV and the R_frate to find CNPV)