Question $1(1$ point$)$

Finding the Weighted Average Cost of Capital $($WACC$)$:

You are given the following information for GoodConstruction, Inc. Assume the company's tax rate is $24\%$ :

Debt: $,$$$40,000,000$ of face value of bonds outstanding with $8\mathrm{.}0\%$

coupon rate, $10$ years to maturity, selling at $110$ percent of the face

value; the bonds make semiannual payments. The company has no

additional debt

Common stock: $,800,000$ shares outstanding, selling for $$70$ per share; the beta is

$0\mathrm{.}9.$

Preferred stock: $,800,000$ shares of preferred stock outstanding, currently selling for

$$25$ per share, and dividend of $$2\mathrm{.}5$ per share

Market Information: $,7\mathrm{.}5\%$ market risk premium and $4\mathrm{.}00\%$ risk$-$free rate.

What are the Capital Structure Weights? $,$ and $\{$:$W_{PS})$

What is the company's cost of debt $($Pre$-$tax and After$-$tax$)?$

What is the company's cost of common stock?

What is the company's cost of preferred stock?

What is the company's WACC?