Calculate the WACC for PG given the following: a) The company has outstanding debt that matures in 20 years that has a coupon of 9%. It pays interest semi-annually and the bonds are callable in 3 years at a 3% premium to par. The current price of the bonds is 1214.59. For a reference 20 year Treasuries are yielding 3.5%. (PG bonds are rated AA) b) PG has outstanding preferred that have an 8% coupon, $100 par value and is currently priced at $120. If new preferred was issued the company would incur flotation costs of 5%. c) The company’s stock is currently priced at $100 and the current dividend is $3.00. That dividend is expected to grow at 3% forever. The beta of PG is 0.6 and the RFR and MRP are 3% and 7% respectively. Ignore flotation costs for your cost of equity. d) The target structure is 60% equity, 30% debt and 10% preferred. The tax rate is 40%. e) If the company had no residual cash and new issued equity would incur a flotation cost of 10%. Calculate a new the WACC using only the DCF method for equity and keeping all other factors the same. Comment on your findings