please show the entire working process include formula. no excel generated. thank you

Question 2 First Tennessee Utility Company faces an increasing need for capital. Fortunately, it has an An2 credit rating. The corporate tax rate is 36 percent. First Tennessee's treasurer is trying to determine the corporation's current weighted average cost of capital in order to assess the profitability of capital budgeting projects. Historically the corporation's carnings and dividends per share have increased at about a 6 percent annual rate. First Tennessee's common stock is selling at $60 per share, and the company will pay a $4.80 por share dividend (D). The company's $100 preferred stock has been yielding investment banker to be $1.56 for preferred stock. The company's optimum capital structure is percent in the current market. Flotation costs for the company have been estimated by its 40 percent debt, 10 percent preferred stock. and 50 percent common equity in the form of retained earings. Refer to the table below on bond issues for comparative yields on bonds of equal risk to First Tennessee Compute the answers to questions a, b, c, and d from the information given Yield to Maturity Price Data on Bond Issues Moody's Issue Rating Utilities: Balt, G&E 8%s 2010.. Aal New York Tel. Co. 7%is 2009 Aa2 Miss, Pow. 9.62s 2011 Industrials: IBM 9%s 2016 May Department St. 7.95s 2010 Aa3 General Mills 9%s 2009. A2 $ 975.25 850.75 960.50 8.60% 9.11 9.67 $1,050.50 940,00 1,030.75 8.50% 11.81 9.05 (5 marks) Cost of debt after tax. (Hint: Use the table above) (5 marks) (b) Cost of preferred stock. (5 marks) (c) Cost of common equity in the form of retained earnings. (d) Weighted average cost of capital. (5 marks) It has often been said that if the company can't cam a rate of return greater than the cost of capital it should not make investments. Explain