You are employed by Edison Inc. Your boss has asked you to estimate the weighted average cost of capital for the company. Following are balance sheets and some information about the company.

Assets

Current assets $$30,000,000$

Net plant, property, and equipment $$100,000,000$

Total Assets $$130,000,000$

Liabilities and Equity

Accounts payable $$10,000,000$

Accruals $$10,000,000$

Current liabilities $$20,000,000$

Long term debt $(40,000$ bonds, $$1,000$ face value$)$ $$40,000,000$

Total liabilities $$60,000,000$

Preferred Stock $(100,000$ shares, $$100$ face value$)$ $$10,000,000$

Common Stock $(10,000,000$ shares$)$ $$30,000,000$

Retained Earnings $$30,000,000$

Total shareholders equity $$70,000,000$

Total liabilities and shareholders equity $$130,000,000$

$1)$ WHAT IS THE COST OF PREFERRED STOCK, Kps$?$

$2)$ WHAT THE BEST ESTIMATE FOR THE RATIO OF WEIGHTS TO BE USED WHEN CALCULATING THE WACC?

$($Weight of equity, Weight of debt $,$and Weight of preferred stock$)$

$3)$ WHAT IS THE AFTER$-$TAX COST OF DEBT, Kd $(1-$T$)?$

$4)$ What is the best estimate of the WACC for Edison Inc?