Below is the financial information for Rochester Ltd.

Using the given information, calculate the following:

1. (1 mark) Cost of debt
2. (1 mark) Cost of preferred shares
3. (1 mark) Cost of equity
4. (1 mark) Weighted average cost of capital (WACC)
5. (1 mark) Explain (not calculate) how the companys cost of equity would change (increase/decrease) if its share price doubled, briefly explain your answer.

Percent of capital structure:
Debt	40%
Preferred stock	20%
Common equity	40%
Additional information:
Bond coupon rate	12%
Bond yield	10%
Dividend, expected common	$6.00
Dividend, preferred	$13.00
Price, common	$65.00
Price, preferred	$108.00
Floatation cost, preferred	$3.50
Corporate growth rate	5%
Corporate tax rate	40%