1. What is the cost of equity? 

2. What is the cost of preference shares? 

3. What is the company's WACC? 

The CFO of Wills Hornets Inc. is calculating the WACC of the company. She collects the following facts: The company's long-term bonds currently offer a yield to maturity of 8.0%. The company's stock price is $34.9 per share and will pay a dividend of $2 per share at the end of the year, and which is expected to grow at a constant rate of 6.0% per year. The company preference shares currently trade at $43.6 per share and pay a preference dividend of 10.0% on a par value of $50. The company's capital structure is 65.0% common equity, 10.0% preference shares, and 25.0% debt. The company's tax rate is 35.5%.