Consider the following data to solve problems 1 to 5.

A. The investment capital of Executive Consultants, Inc. is as follows:

Sources of capital	Capital
Deuda (bonos corporativos)	$4,100,000
Acciones preferentes	$2,200,000
Acciones comunes	$2,800,000

B. To generate the $4.1 million in corporate bond capital, they issued bonds at $965 of par value, with an annual coupon of $100 for the next 10 years, with a float cost of $10 per bond.

C. The preferred stock issuance costs $5 per share and will pay a dividend of 10% of its par value of $110 per preferred share.

D. The risk-free rate is 3.45% and the market return is 11.25%. The company's beta coefficient is 1.23.E. Executive Consultants, Inc. has a 35% tax liability.

To receive points for your answer, you must present the procedure and all calculations.

1. Determine the capital structure of Excutive Consultants, Inc.

2. Calculate the cost of debt.

3. Calculate the cost of preferred capital.

4. Calculate the cost of equity capital (common stock).

5. Determine the weighted average cost of capital (WACC) for the firm.

MBA 5050 7.2