Just need help with, With is the WACC for Universal Exports?

Homework: Chapter 11. Learning Objective 2. Topic Homework 1 Save Score: 0.14 of 1 pt 2 of 5 (2 complete) HW Score: 22.86%, 1.14 of 5 pts % Problem 11.LO2.20 (similar to) Question Help Using the balance sheet provided for Universal Exports, determine the weighted average cost of capital. The firm's tax rate is 30%, the preferred stock pays a dividend of $0.25 per share the beta of the stock is 1.55, the market risk premium is 4%, and the risk-free rate is 5%. Assume that the book value capital structure weights are the company's optimal weights. Assets Cash and Short-Term Securities $11 Universal Exports Balance Sheet ($ millions) Liabilities & Owner's Equity $5 Bonds (9% annual coupon, 20-year maturity. 10% YTM) 5 Preferred Stock (market price = $3.46) 5 Common Stock 22 37 Total 4 22 Accounts Receivable Inventories Plant and Equipment Total 37 What is the after-tax cost of debt for Universal Exports? 7.00 % (Round to two decimal places.) What is the cost of preferred stock for Universal Exports? 7.22 % (Round to two decimal es.) What is the cost of common equity for Universal Exports? Note that the problem give us the amount of the market risk premium, which is equal to (KM-KF). 11.20 % (Round to two decimal places.) What is the WACC for Universal Exports? 1% (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. ? All parts showing Clear All Check