Question 6 Needs Grading GDF Is a German company specialized in the manufacturing of car parts. The table below shows some financial data for GDF as of the end of 2020 5 1000 Number of shares of common stock (in millions) 10 Price per common share () 24 Cost of equity 16% Number of shares of preference stock (in millions) Price per preference share (0) 16 Cost of preferred stock 10% Number of Long-term bonds outstanding 300,000 Market price per bond (% of par principal) 115% Principal value of bond ( Coupon 6 Remaining time to maturity (years) 25 Corporation tax 40% Required: A. Calculate the pre-tax cost of debt. Show your workings. (5 marks) B. Calculate the market value of common stock. Show your workings. (2.5 marks) C. Calculate the market value of preferred stock. Show your workings. (2.5 marks) D. Calculate the market value of debt. Show your workings. (2.5 marks) E. Calculate the market value of total capital. Show your workings. (2.5 marks) F. Calculate the cost of capital (or Weighted Average Cost of Capital, WACC). Show your workings. (5 marks) Note: show one decimal place for all calculations