Given the following information for XYZ Co., you want to find the cost of capital (WACC). The firms tax rate is 40%. Ignore all the flotation cost. Debt: 8,000 7% coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 98% of par; the bonds make semiannual payments. Preferred stock: 20,000 shares of 7% preferred stock outstanding, $100 par value, currently Common Stock: selling for $90 per share. 300,000 shares outstanding, selling for $50 per share; the beta is 1.25. Currently, the market risk premium is 6%, and the risk-free rate is 3%.

What is the cost of debt?

What is the cost of preferred stock?

What is the cost of common stock?

Given the above information, what is the cost of capital?