I need help with b, e, f, & g please.

1. The firms marginal tax rate is 21%.
2. The current price of the corporations 10% coupon, semiannual payment, noncallable bonds with 15 years remaining to maturity is $1,011.55. The company does not use short-term interest-bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost.
3. The current price of the firms 10%, $100 par value, quarterly dividend, perpetual preferred stock is $110.12. The company would incur flotation costs of $3 per share on a new issue.
4. The companys common stock is currently selling at $55 per share. Its last dividend (D₀) was $4.99, and dividends are expected to grow at a constant rate of 4.8% in the foreseeable future. The companys beta is 1.1, the yield on Treasury bonds is 4%, and the market risk premium is estimated to be 7%. For the bond-yield-plus-risk-premium approach, the firm uses a four percentage point risk premium.
5. Up to $300,000 of new common stock can be sold at a flotation cost of 15%. Above $300,000, the flotation cost would rise to 25%.
6. The companys target capital structure is 30 %long-term debt, 10% preferred stock, and 60% common equity.
7. The firm is forecasting retained earnings of $300,000 for the coming year.

Answer the following questions:

a. (1) What sources of capital should be included when you estimate Colemans weighted average cost of capital (WACC)?

(2) Should the component costs be figured on a before-tax or an after-tax basis? Explain.

(3) Should the costs be historical (embedded) costs or new (marginal) costs? Explain.

b. What is the market interest rate on the companys debt and its component cost of debt?

c. (1) What is the firms cost of preferred stock?

(2) The companys preferred stock is riskier to investors than its debt, yet the yield to investors is lower than the yield to maturity on the debt. Does this suggest that you have made a mistake? (Hint: Think about taxes.)

d. (1) Why is there a cost associated with retained earnings?

(2) What is the companys estimated cost of retained earnings using the CAPM approach?

e. What is the estimated cost of retained earnings using the discounted cash flow (DCF) approach?

f. What is the bond-yield-plus-risk-premium estimate for the companys cost of retained earnings?

g. What is your final estimate for r_s?