Homework: Week 4 - Chapter 9 Question 4, P9-16 (similar to) Part 1016 HW Score: 0%, 0 of 100 points Points: 0 of 25 Save redit: 0 Question 4 (0/25) Cost of capital Edna Recording Studios, Inc, reported earnings available to common stock of 54,600,000 last year From those canings, the company pod dividend of 51.17 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 45% debl. 10% preferred stock, and 15% common stock It is taxed at a rate of 29% a. It the market price of the common stock is $33 and dividends are expected to grow at a rate of 5% per year for the foreseeable future, what the company cost of retained eaming financing? b. I underpricing and flotation costs on new shares of common stock amount to S7 per share what is the company's cost of new common took financing c. The company can issue $2.49 dividend preferred stock for a market price of $25 per share. Flotation costs would amount to St per share. What is the cost of proferred stock financing? d. The company can issue 51,000-par-valse, 12% coupon, 14-year bonds that can be sold for 51240 eachFlotation costs would amount to S20 per bond. Use the estimation formula to Sgure the approximate after tax cost of debt financing? .. What is the WACC? his ca a. If the market price of the common stock is 533 and dividends are expected to grow at a rate of server for the foreseeabieluture, the company's cost of retained earnings financing is Round to two decimat place)