FINA Companys assets are $750 million, financed through bank loans, bonds, preferred stocks, and common stocks. Tax rate is 15 percent. The amounts are as follows: Bank loans: $ 100 million borrowed at 3% Bonds: $280 million, paying 5% coupon with semi-annual payments, and maturity of 10 years. FINA sold its $1,000 par-value bonds for $1020 and had to incur $20 flotation cost per bond. Preferred Stocks: $120 million, paying $15 dividends per share. FINA sold its preferred shares for $220 and had to incur $20/share flotation cost. Common Stocks: $250 million, beta is 2, the risk-free rate is 6 percent, and the market rate is 10%.

Calculate the cost of capital. Please show your work precisely by indicating each component and weight.

Cost of the project: $14,000

Year	After tax Cash flow
1	$4,000
2	$4,000
3	$4,000
4	$4,000
5	$4,000