HBM, Inc has the following capital structure:

Assets	$	450,000		Debt	$	112,500
				Preferred stock		45,000
				Common stock		292,500

The common stock is currently selling for $15 a share, pays a cash dividend of $0.90 per share, and is growing annually at 3 percent. The preferred stock pays a $10 cash dividend and currently sells for $96 a share. The debt pays interest of 7.0 percent annually, and the firm is in the 30 percent marginal tax bracket.

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

_____ %

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

_______%

c) What is the cost of common stock? Assume that the current $0.90 dividend grows by 3 percent during the year. Round your answer to two decimal places.

________%

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

______ %