Please show work and formula. I am studying for a test. Thank you I will upvote. Peter’s Audio has a yield to maturity on its debt of 7.8 percent, a cost of common stock of 12.4 percent, and a cost of preferred stock of 8 percent. The firm has 105,000 shares of common stock outstanding at a market price of $22 a share. There are 25,000 shares of preferred stock outstanding at a market price of $45 a share. The bond issue has a total face value of $1.5 million and sells at 98 percent of face value. If the tax rate is 34 percent, what is the weighted average cost of capital?

# Please show work and formula.

Please show work and formula. I am studying for a test. Thank you I will upvote.

There is a 20 percent probability the economy will boom, 70 percent probability it will be normal, and a 10 percent probability of a recession. Stock A will return 18 percent in a boom, 11 percent in a normal economy, and lose 10 percent in a recession. Stock B will return 9 percent in boom, 7 percent in a normal economy, and 4 percent in a recession. What is the expected return and variance of a portfolio which is invested 40 percent in Stock A and 60 percent in Stock B?