A company has 10,000 bonds outstanding, which are sold for 110 percent of par. The par value is $1,000. The yield to maturity is 8%. The company has 150,000 shares of common stock, selling for $50 per share. The next dividend is expected to be $5 per share. After that, the dividend will grow at 2% per year. The company also has 20,000 shares of preferred stocks, currently selling for $30. The preferred stocks pay a dividend of $3 per share every year. The corporate tax rate is 21%

. a. What is the capital structure of the company? (hint: the weight of each financing)

b. What are cost of equity, cost of debt, and cost of preferred stock?

c. What is the cost of capital of the company?