A company has total capital of $$300$ million. The company$$s long$-$term debt is $$175$ million; the rest of the capital is owners$$ equity.

The stock price is $$45,$ next year$$s dividends are expected to be $$5$ per share and expected to have a constant growth rate of $4\%.$ The risk$-$free rate is $3\%.$

The company$$s bonds are trading for $$1050$ each. The bonds mature in $13$ years and the semi$-$annual coupon is $$40($the total coupon per year is $$80).$ The bonds have a face value of $$1,000.$

$1.$Calculate the required return on the company$$s stock.

$2.$Calculate the cost of debt of the company.

$3.$Calculate the cost of capital, WACC, for the company.