Calculation of individual costs and WACC Dillon Labs has asked its financial managor to measure the cost of each specific type of capitat as welf as the weighted average cost of capitat. The welghted average cost is to be meatured by using the following weights: 40% long-term debt, 20% preferred stock, and 40% common stock equity (retained earnings, now cornmon slock, or both). The firm's tax rate is 27%. Debt The firm can sell for $1000 a 11-year, \$1,000-par-value bond paying annual inforest at a 9.00% coupon rate. A flotation cost of 3% of the par value is required. Preferred stock 10.00% (annual dividend) preferred stock having a par value of $100 can be sold for $94. An additional fee of $3 per share must be paid to the underwriters. Common stock. The firm's common stock is currently selling for $50 per shave. The stock has paid a dividend that has gradualy increased for many years, rising from $2.25 ten years ogo to the $4.22 dividend payment, D0, that the company just recently made. If the company wants to issue new new common stock, it will sell them $3.50 below the current market price to attract investors, and the company will pay $2.50 per share in flotation costs. a. The after-tax cost of debt using the bond's yield to maturity (YTM) is \%. (Round to two decimal places)