Given the following information and no flotation costs, calculate the firms weighted average cost of capital (WACC).

The firm has 1.5 million shares of common stock outstanding, each currently trading at $27.65. The firm just paid a dividend yesterday, has a dividend yield of 4% and maintains a 5% growth rate of its dividends.

The firm has 37,000 bonds outstanding, each with par value of $1,000 and current priced at 94.352% of face value. The coupon rate is 5%, paid semiannually and the most recent coupon was paid yesterday. They mature in 15 years.

The firm has a marginal tax rate of 22%. The yield on 10-year U.S. Treasuries is 0.90% and the yield to maturity 2 years ago when the firm last issued debt was 5%.

1. What proportion of the firm is financed with equity and what is the cost of equity?
2. What proportion of the firm is financed with debt and what is the before-tax cost of debt? Show your work and/or calculator steps.
3. What is the WACC?