Kindly assist how to calculate this. its a bit confusing me.
A company has the following capital structure: Debt 20%, Preference 28% and Equity 52%. Expected net income this year is $34,285.72 dividend payout ratio is 30% future earnings and dividends to grow at a constant rate of 9%. The co. paid a dividend of $3.6/share last year and its stock currently sells for $54/share. The Co.can obtain new capital in the following ways. i) A perpetual preference stock with an $10 dividend . currently selling for $90 but floatation cost will be 7% of mkt price.ii) Debt can be sold at 15%. (a)Determine the cost of each capital component (b) calculate WACC.