HBM, Inc. has the following capital structure: Assets $500,000 Debt $140,000 Common Stock $360,000 The common stock of the company has a of 1.5 and the expected market risk premium is 6%. The rate on long-term Treasury bonds is 2%. The debt pays an interest of 8.5% annually and the firm is paying 25% effective tax rate. (a) What is the after-tax cost of debt? (b) What is the cost of common stock? (c) What is the firm's weighted-average cost of capital