Question: Use the following information in the table below to answer the following questions: Symbol Amount rd T 10 % 5 % Dps $ 10 P

 Use the following information in the table below to answer the

Use the following information in the table below to answer the following questions: Symbol Amount rd T 10 % 5 % Dps $ 10 P Item Interest rate on bank loans Annual Tax rate Annual Dividends on preferred stock Issuing price of preferred Stock Flotation cost on issue of preferred stock Risk Free Rate Expected Market Risk Premium Stocks beta $ 40 FC 5% RF 5% RP 10 % Bi 0.5 Debt D $ 1,000,000 Preferred Stocks Ps $ 600,000 $ 400,000 Common Stocks S A. Calculate the weight of each component in capital for this company: Weight of Debt: Weight of Preferred Stock: Weight of Common Stock: B. Calculate the cost of debt. C. Calculate the cost of preferred stock. D. Calculate the cost of common stock. E. Calculate the weighted average cost of capital (WACC)

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