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What is the cost of debt, preferred stock and common equity forForecasters R US? What is the WACC: The firm is in the 40% taxbracket. The optimal capital structure is listed below: Brieflydiscuss your results and what they represent.Source of Capital     WeightLong-Term Debt25%Preferred Stock20%Common Stock55%Debt: The firm can issue $1,000 par value, 8% coupon interestbonds with a 20-year maturity date. The bond has an averagediscount of $30 and flotation costs of $30 per bond. The sellingprice is $1,000.Preferred Stock: The firm can sell preferred stock with adividend that is 8% of the current price. The stock costs $95. Thecost of issuing and selling the stock is expected to be $5 pershare.Common Stock: The firm’s common stock is currently selling for$90 per share. The firm expects to pay cash dividends of $7 pershare next year. The dividends have been growing at 6%. The stockmust be discounted by $7 and flotation costs are expected to amountto $5 per share.