ABC Company is doing a project assessment and needs to know what it's weighted average cost of capital is for supporting its current operations. They will adjust it from there based on risk weighting the individual projects. The company has the following components to its capital structure:

A. Debt 3 Components:

$10,660,000 of long term bank debt at 6.75%.

$15,000,000 par value bonds at 4.75% with 15 year maturity and a sale price of 92% of par.

$8,750,000 par value bonds at 5.25% with an 8 year maturity and a sale price of 97% of par.

B. Preferred Stock is $17,600,000 in par value at $100 par value per share. Price per share is $111.75 and the annual payment is $4.20 per share.

C. Stock is selling for $52.85 per share and there are 1,150,000 shares outstanding. The company has a beta of 1.26, expected market premium of 8.2% and the risk free rate is 1.36.

1. Calculate the cost of debt.

2. Calculate the cost of preferred stock.

3. Calculate the cost of equity.

4. Calculate the weighted average cost of capital.