Good afternoon, I will apreciate your help with these questions. Thank you so much in advance.

The Gamma Products Corporation has the following capital structure, which it considers optimal:

Bonds,	7%	(now selling at par)	600 000
Preferred stock,	10	USD	480 000
Common stock			720 000
Retained earnings			600 000
			2 400 000

Dividends on common stock are currently 7 USD per share and are expected to grow at a constant rate of 6%. Market price per share of common stock is 50 USD, and the preferred stock is selling at 60 USD. Flotation cost on new issues of common stock is 10%. The interest on bonds is paid annually. The company's tax rate is 40%.

Calculate:

(a) the cost of bonds

(b) the cost of preferred stock

(c ) the cost of retained earnings (or internal equity)

(d) the cost of new common stock (or external equity) and

(e ) the weighted average cost of capital