A$-$Rod Manufacturing Company is trying to calculate its cost of capital for use in making a capital budgeting decision. Mr$.$ Jeter, the vice president of finance, has given you the following information and has asked you to compute the weighted average cost of capital.

The company currently has outstanding a bond with a $11\mathrm{.}4$ percent coupon, rate and another bond with an $9\mathrm{.}0$ percent rate. The firm has been informed by its investment banker that bonds of equal risk and credit rating are now selling to yield $12\mathrm{.}3$ percent. The common stock has a price of $$68$ and an expected dividend $(D_1)$ of $$1\mathrm{.}88$ per share. The historical growth pattern $(g)$ for dividends is as follows:

$$1\mathrm{.}43$

$1\mathrm{.}57$

$1\mathrm{.}72$

$1\mathrm{.}88$

The preferred stock is selling at $$88$ per share and pays a dividend of $$8\mathrm{.}40$ per share. The corporate tax rate is $30$ percent. The flotation cost is $2\mathrm{.}0$ percent of the selling price for preferred stock. The optimum capital structure for the firm is $25$ percent debt, $15$ percent preferred stock, and $60$ percent common equity in the form of retained earnings.

a$.$ Compute the average historical growth rate.

Note: Do not round intermediate calculations. Round your answer to the nearest whole percent and use this value as $g.$ Input your answer as a whole percent.

Growth rate

$\%$

b$.$ Compute the cost of capital for the individual components in the capital structure.

Note: Use the rounded whole percent computed in part a for $g.$ Do not round any other intermediate calculations. Input your answers as a percent rounded to $2$ decimal places.

$\backslash$table$[[,$Weighted Cost$],[$Debt$,],[$Preferred stock,$]]$