A corporation has 10,000 bonds outstanding with a 6% annual coupon rate and 8 years to maturity. Each bond has a $1,000 face value and a $1,100 market price. The companys 1,250,000 shares of common stock sell for $10 per share. The company will pay $1.2/share in dividend next period, the steady growth of dividend 4%/period is expected to last infinitely. Tax rate is 40%.

1.What is the companys cost of debt? 2.What is the companys cost of equity? 3.What is the companys weight of debt and equity? 4.What is the companys WACC?