Estimate a companys cost of capital, based on the following

-The firms 10% coupon, semi-annual payment, non-callable bonds, with 20 years left to maturity are currently trading at 99, but have face value of $15 million. New bonds, if issued, would incur 5% after-tax flotation costs.

- The current price of firms 12%, $10 par value, quarterly dividend, preferred stock is $11. After-tax Flotation costs of 6% would be incurred on any new issue, but there are 250,000 preferred stock currently issued.

- The firms common stock is currently trading at $70 per share. Its most recent dividend was $5 per share, which is expected to grow at a constant rate of 5%.

- The firms beta is 2.1, the treasury yield is 1% and the market risk premium is estimated to be 6%. After-tax flotation costs of 2% would be incurred on any new issue, but there are 500,000 common stock currently issued.

- Assume that the companys income is subject to 25% tax-rate and that the company is unsure if any new projects will be financed internally or externally.