Question: please show work 6. Cylinx has a target capital structure that calls for 40% debt, 10% preferred stock, and 50% common equity. The firm's current

please show work please show work 6. Cylinx has a target capital structure that calls

6. Cylinx has a target capital structure that calls for 40% debt, 10% preferred stock, and 50% common equity. The firm's current pre-tax cost of debt is 6 percent, and it can sell as much debt as it wishes at this rate. The firm's preferred stock currently sells for $90 per share and pays a dividend of $10 per share; however, the firm will net only $80 per share from the sale of new preferred stock. Cylinx's common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock that is expected to grow at a constant rate of 3 percent per year. The firm's tax rate is 35%. a. What is the firm's cost of common stock, r,?! b. What is the firm's cost of newly issued preferred stock, rps?! c. What is the firm's weighted average cost of capital (WACC)

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