Assume that you are an intern with the Brayton Company, and you have collected the following data: The companys10-year $1,000 par bond with coupon rate of 6% coupon is currently sold for $855 anf flotation cost of $14; its tax rate is 40%; the next expected dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6.00% a year; the price of the stock is $15.00 per share; the flotation cost for selling new shares is F = 10% of price; and the target capital structure is 45% debt and 55% common equity. Brayton does not raise fund through preferred stocks.

a) What is the bond's cost of capital? b) What is the cost of retained earnings? c) What is the cost of issuing new common stocks? d) What is the firm's WACC when it raises funds for financing through debt and retained earnings? e) What is the firm's WACC when it raises funds for financing through s debt and new shares of commons stock?