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Using the following information for RZX Corp. and the generaleconomy, compute the weighted average cost of capital for RZXCorp:– The YTM on 20-year U.S. Treasury bonds is 3.5%. The marketrisk premium is 5.5%.– RZX has 6.75% coupon bonds that were issued five years ago,mature in 20 years,make semiannual interest payments, and currently sell for$1,036.60.– The current price of the firm’s 6.80%, $100.00 par value,quarterly dividend, perpetualpreferred stock is $104.50.– RZX’s common stock is currently selling for $40 per share. Itjust paid a $2.95 dividend, andthese dividends are expected to grow at a constant annual rateof 6% in the foreseeable future. Assume the risk-free rate is 7%and the market risk premium is 6%. For the bond-yield-plus-risk-premium approach, the firm uses a risk premium of5%.– RZX common stock has a beta of 1.25.- RZX has a marginal corporate tax rate of 35%– The firm’s CFO suggests that its target capital structure is15% debt, 5% preferred stock, and 60% equity.1. Using WACC compute the weighted average cost of capital.2. What is the after tax cost of debt for RZX.3. What is the cost of equity for RZX Corp? Use CCAP and WACC.Assumer the equity risk premium is 4.5%