3.AJAX INC. IS EXPECTING TO ISSUE NEW DEBT AT PAR WITH COUPON RATE OF 6% AND TO

3.AJAX INC. IS EXPECTING TO ISSUE NEW DEBT AT PAR WITH COUPON RATE OF 6% AND TO ISSUE NEW PREFERRED STOCK WITH $2.00 PER SHARE DIVIDEND AT $20.00. COMMON STOCK IS CURRENTLY SELLING FOR $25.00 A SHARE. AJAX EXPECTS TO PAY A DIVIDEND OF $2.50 PER SHARE NEXT YEAR AND A MARKET ANALYSIS INDICATES DIVIDENDS WILL GROW AT 3% PER YEAR. THE MARGINIAL TAX RATE IS 40%. A. WHAT IS THE COST OF DEBT COST OF PREFERRED STOCK AND COST OF COMMON STOCK? B. IF AJAX RAISES CAPITAL USING CAPITAL STURCTURE OF 40% DEBT 10% PREFERRED STOCK AND 50% COMMON STOCK WHAT IS THE COST OF CAPITAL FOR AJAX INC.?