Answer the following questions with the additional information given below. - Tax rate = 40%- [Debt] Its long-term bond with 10 = years maturity, 8% semiannual coupons, and $1,000 face value is currently traded at $875-38 (No floatation cost, just for simplicity) - [Preferred stock] $6 dividend-paying (annually) preferred stock is currently traded at $50. - Common stock] * The common stock that paid a $5 dividend at the last year-end is now traded at $53, and the dividend is expected to grow at 6% per year. * The risk-free rate is 3%, the market risk premium is 8%, and its beta is 1.5. According to studies, 3-5% bond-yield risk premium on common stocks is added to the long-term bond yield. * (3) Calculate the cost of common stock (assuming no floatation cost). iii. Add 4%p bond-yield premium to the long-term bond yield obtained from (1) (before tax). (3 points)