Dingel Inc. is attempting to evaluate three alternative capital structures - A, B, and C. The following table cost data. The firm is subject to a 40% tax rate. The risk-free rate is 5.3% and the market return is curre Item Debt (5 million) A 35 Preferred Stock ($ million) 0 Common Stock ($ million) Total capital ($ million) 65 100 7.0% Debt (yield to maturity) Preferred stock dividend Preferred stock (price) Common stock beta a. Calculate the after-tax cost of debt for each capital structure. (Show your work. Three decimal pla b. Calculate the cost of preferred stock for each capital structure. (Show your work. Four decimal pla c. Calculate the cost of common stock for each capital structure. (Show your work. Label %. Two de d. Calculate the weighted average cost of capital (WACC) for each capital structure. (Show your work. e. Compare the WACCS calculated in part (d) and discuss the impact of the firm's financial leverage on i 0.95 A B C A. 0.042 0.045 0.051 B. C. 0.0933 0.1048 ABC 0.053 0.95 0.054 0.053 1.1 0.054 0.053 1.25 0.054 d A 0.35 0.042 0.65 BC 0.45 0.045 0.1 C 0.55 0.051 0.1