Colfax Inc. manufactures high-end ice cream makers to sell to companies across the globe. The following market data on Colfax are current and available:

Debt 130,000 6.1 percent coupon bonds outstanding, 25 years to maturity, selling for 104 percent of par; the bonds have a par value of $2,000 and make semiannual payments.

Common stock 9,900,000 shares outstanding, selling for $68 per share; the beta is 1.20.

Preferred stock 400,000 shares of preferred stock outstanding, selling for $87 per share with a $3.65 stated dividend. The next dividend payment is in exactly one year.

Market 7 percent expected market risk premium; 3.1 percent risk-free rate.

Q1. Calculate the cost of equity common stock. Present your answer in % rounded to two decimal places (e.g., 12.34%). 6 pts.

Q2. Calculate the cost of equity preferred stock. Present your answer in % rounded to two decimal places (e.g., 12.34%). 6 pts.

Q3. Calculate the cost of debt. Present your answer as % rounded to two decimal places (e.g., 12.34%). 6 pts.

Q4. Calculate the WACC using the market-value weight. Present your answer as % rounded to two decimal places (e.g., 12.34%). 10 pts.

Q5. Suppose Cougar Gold Inc., Colfax biggest competitor, has 400,000 shares of preferred stock outstanding with $3.65 stated dividend. What is Cougar Golds preferred stock price if the next dividend is in exactly 7 months? Round your answer to two decimal places. 6 pts.

Q6. Suppose Cougar Gold Inc. has outstanding bonds that are convertible but otherwise identical to Colfax bonds. The bonds have a conversion ratio of 25. Cougar Golds stock is selling for $83.5 per share.

a. What is Cougar Gold bonds conversion price? Round your answer to two decimal places. 6 pts.

b. What is Cougar Gold bonds conversion value? Round your answer to two decimal places. 6 pts