Hermes S$.$A$.$ is planning to produce a new product. The general manager has estimated that the cash flows and initial costs required for the implementation of the investment plan are $5,000,000.$ The company will finance the investment plan with the issuance of a bond loan of $2,000,000,$ a bank loan of $1,000,000$ and the rest will be covered by equity $($undistributed profits of the company$).$ In addition, the following information is provided for the financing scheme of the project:

For equity, it is given that the current share price of Hermes S$.$A$.$ is $8\mathrm{.}5.$ The company has just paid a dividend of $1$ per share and the annual dividend growth rate is $2\%$ fixed, which is estimated to remain at this level for the foreseeable future.

For debt capital, the following data are given:

The bank loan will have a duration of $10$ years and will be repaid in $10$ equal annual installments. The annual interest rate of the loan is estimated at $12\%.$

The bonds issued by the company also have a duration of $10$ years and an issue rate of $4\%.$ The face value of the bonds is $1,000,$ while their market value is $789\mathrm{.}29.$

Use the above information to calculate:

A$.$ The cost of equity capital $($Km$).$

B$.$ The after$-$tax cost of bank debt $($Kd$).$

C$.$ The after$-$tax cost of bond debt $($y$).$

D$.$ The weighted average cost of capital $($WACC$)$

The new investment has the same level of risk as any other investment that Hermes S$.$A$.$ has already undertaken.

Hermes S$.$A$.$ uses the same proportions of capital sources in all its investments and therefore the company's capital structure remains constant in all its activities.

The corporate tax rate is $20\%.$

There is no flotation cost for any source of capital.