Problem 13.24 The Imaginary Products Co. currently has debt with a market value of $200 million outstanding. The debt consists of 9 percent coupon bonds (semiannual coupon payments) which have a maturity of 15 yearsa are currently priced at $1,038.50 per bond. The firm also has an issue of 2 million preferred shares outstanding with a market price of $23.00 per share. The preferred shares pay an annual dividend of $1.20 Imaginary also has 14 million shares of common stock outstanding with a price of $20.00 per share. The firm is expected to pay a $2.20 common dividend one year from today, and that dividend is expected to increase by 7 percent per year forever. If Imaginary is subject to a 40 percent marginal tax rate, then what is the firm's weighted average cost of capital? Calculate the weights for debt, common equity, and pre erred equity. Round intermedate calulations to 4 de mal places, e 1 25M andina answersto2 decmai places e is. Debt Common equity LINK TO TEXT INTERACTIVE TUTORIAL Calculate the cost of debt. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Cost of debt LINK TO TEXT Calculate the cost of preferred equity Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%. Cost of preferred equity 0% Calculate the cost of common equity Round intermediate calculations to 4 decimal places, eg. 1.2514 and final answer to 0 decimal places, e.g. 15%. .) Cost of common equity LINK TO TEXT INTERACTIVE TUTORIAL What is the firm's weighted average cost of capital? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) WACC LINK TO TEXT INTERACTIVE TUTORIAL