(35 points) Titan Mining Corporation has 14 million shares of common stock outstanding, 900,000 shares of 9 percent preferred stock outstanding and 220,000 ten percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $42 per share and has a beta of 1.15, the preferred stock currently sells for $80 per share, and the bonds have 17 years to maturity and sell for 91 percent of par. The market risk premium is 11.5 percent, T-bills are yielding 7.5 percent, and the firm's tax rate is 32 percent (Show step-by-step without Excel)

(a) Compute the after-tax cost of debt. (5 points)

(b) Compute the cost of common equity. (5 points)

(c) The formula you used to calculate the cost of common equity is discovered by whom? (5 points)

(d) Compute the cost of preferred stock. (5 points)

(e) Compute the weighted average cost of capital. (15 points)