A firm needs to calculate its cost of capital for a potential investment. The firm's bonds trade at $925.00. The firm's optimal capital structure is assumed to be 55% debt, 45% equity. The company's equity can be issued at a before-tax cost of 15%. The tax rate is 30%. The firm plans to issue bonds with 10-year maturity and an annual coupon rate of 8% (face value=1000). There will be a $10 floation costs that is related to the bond issuance. a) Calculate the cost of debt to the firm after taxes? (15 points) b) What is the cost of equity? (15 points) c) What is WACC for this firm? (20 points)