empest Manufacturing has 8 million shares of common stock outstanding. The current share price is $73 and the book value per share is $7. Dividends are $0.50 per share paid quarterly and grow at a rate of 6% per year. Tempest Manufacturing also has a bond issued and outstanding. It has a face value of $85 million and a 7% coupon paid semi annually and sells for 97% of par. It has 10 years to maturity. a. What is the cost of equity? (2 marks) b. What is the cost of debt? (2 marks) c. What is the weighted average cost of capital for Tempest? (4 marks) d. Why is 1 advantage to Tempest of issuing debt vs equity and 1 disadvantage? (2 marks)