CSM Inc. has the following balance sheet (in $000): Assets: Liabilities and equity: Current assets 13,500 Short-term debt 17,400 Long-term investments PP&E 3,135 30,900 Long-term debt 45,000 Other liabilities 42,600 Other assets 112,465 Preferred stock 10,000 Common equity 45,000 Total assets 160,000 Total liabilities and equity 160,000 Debt: The interest cost for short-term debt is 3%. For long-term debt, the company has only one semiannual coupon bond outstanding. The coupon rate is 6%; time to maturity is 10 years; and current bond price is 90% of face value. Corporate tax rate is 20%. Preferred stocks: 1 million shares; dividend $6 per share with market price of $100. Common stocks: 3 million shares outstanding; stock price $50 per share; beta is 0.5; T-bond rate is 3%; the market return is 15%. The company finances all of its projects with long-term debt, preferred stocks and common stocks. 1. Estimate before-tax cost of debt (%). 2. Estimate cost of preferred stocks (%). 3. Estimate cost of common stocks (%). 4. Estimate cost of capital (%).