$($Calculating the weighted average cost of capital$)$ You are working as a consultant to the Lulu Athletic Clothing Company, and you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. You have determined the market value of the firm's current capital structure $($which the firm considers to be its target mix of financing sources$)$ as follows: LOADING....

To finance the purchase, Lulu will sell $20-$year bonds with a $$1,000$ par value paying $6\mathrm{.}2$ percent per year $($with interest paid semiannually$)$ at the market price of $$1,023.$ Preferred stock paying a $$2\mathrm{.}52$ dividend can be sold for $$34\mathrm{.}44.$ Common stock for Lulu is currently selling for $$49\mathrm{.}14$ per share. The firm paid a $$4\mathrm{.}01$ dividend last year and expects dividends to continue growing at a rate of $3\mathrm{.}6$ percent per year for the indefinite future. The firm's marginal tax rate is $34$ percent. What discount rate should you use to evaluate the warehouse project? a$.$ Calculate component weights of capital.

The weight of debt in the firm's capital structure is $\%.($Round to two decimal places.$)$

The weight of preferred stock in the firm's capital structure is $\%.($Round to two decimal places.$)$

The weight of common stock in the firm's capital structure is $\%.($Round to two decimal places.$)$

b$.$ Calculate component costs of capital.

The after$-$tax cost of debt for the firm is $\%.($Round to two decimal places.$)$

The cost of preferred stock for the firm is $\%.($Round to two decimal places.$)$

The cost of common equity for the firm is $\%.($Round to two decimal places.$)$

c$.$ Calculate the firm's weighted average cost of capital.

The discount rate you should use to evaluate the warehouse project is

$\%.($Round to three decimal places.$)$