HBM, Inc has the following capital structure:

Assets	$	300,000		Debt	$	135,000
				Preferred stock		45,000
				Common stock		120,000

The common stock is currently selling for $18 a share, pays a cash dividend of $0.95 per share, and is growing annually at 4 percent. The preferred stock pays a $7 cash dividend and currently sells for $94 a share. The debt pays interest of 8.5 percent annually, and the firm is in the 30 percent marginal tax bracket.

What is the after-tax cost of debt? Round your answer to two decimal places.

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What is the cost of preferred stock? Round your answer to two decimal places.

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What is the cost of common stock? Assume that the current $0.95 dividend grows by 4 percent during the year. Round your answer to two decimal places.

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What is the firms weighted-average cost of capital? Round your answer to two decimal places.

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