1. Pure Michigan issued a bond with the following features: (2 points) Maturity: 15 years Coupon rate 7.0% per annum, but paid semi-annually Par Value: $1,000 Each bond was sold today for $913.54 but had to pay 4.0% flotation expenses. A total of 328 bonds were sold. What is the BEFORE-TAX Cost of DEBT? (Make sure to annualize the rate) 2. Pure Michigan also issued the following Preferred Stock: (2 points) Coupon rate 6.0% per annum, and paid annually Par Value: $100 Each preferred was sold at $101 but had to pay 2.0% flotation expenses. A total of 990 Preferred Stocks are outstanding What is the cost of Preferred Stock? (Make sure you enter annualized cost] 3. Pure Michigan also issued Common Stocks. (3 Points) Common Stocks were sold at $35.00 per share but had to pay 9.0% in flotation expenses. A total of 17,143 shares are outstanding Dividend just paid = $3.25 Dividend Payout ratio = 30.0% ROE: 7.5% What is the cost of equity? 4. What is Pure Michigan's Cost of Capital (WACC)? (3 Points) Their marginal tax rate = 30.0%