In addition, you have the following information. The last common stock dividend paid by the company was $2.40 and this dividend is expected to grow at a constant 6 percent rate. The price of a share of common is currently $30. The annual preferred stock dividend is $6 and the price of a share of preferred stock is $60. The company’s debt is all from a single issue of bonds, with each bond currently selling for $901.82. The bonds have a 20 year maturity and a coupon rate of 7 percent. (Assume semi-annual payments for the bonds). Tax-rate is 40%. Compute the weights in this capital structure. Calculate the yield-to-maturity on the bonds (before tax cost of debt) Calculate the return on preferred stock Calculate the return on common stock Calculate the WACC