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HBM , Inc has the following capital structure: The common stock is currently selling for $ 1 2 per share, pays a cash dividend of

HBM, Inc has the following capital structure:
The common stock is currently selling for $12 per share, pays a cash dividend of $0.50 per share, and is growing annually at 4 percent. The preferred stock pays a $10 cash dividend and currently sells for $87 per
share. The debt pays interest of 9.0 percent annually, and the firm has a 25 percent tax rate.
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 $0.50 dividend grows by 4 percent during the year. Round your answer to two decimal places.
%
d. What is the firm's weighted-average cost of capital? Round your answer to two decimal places.
%
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