Histoncally, the corporation's earnings and dividends per share have increased about 9.4 percent annually and this should continue in the future. Northwest's common stock is seling at $76 per share, and the company will pay a $9.60 per share dividend (D1). The company's $120 preferred stock has been yielding 9 percent in the current market Flotation costs for the company have been estimated by its investment banker to be $400 for preferred stock. The company's optmum capttal structure is 40 percent debt, 20 percent preferred stock, and 40 percent common equity in the form of retained earnings. Refer to the following table on bond issues for comparative yelds on bonds of equal nisk to Northwest. 0. Compute the cost of debt, Kd. (Use the accompanying tabie--relate to the utbity bond creat rating for yjeid) Note: Do not round intermedlote calculations. Input your onswer as a percent rounded to 2 decimal ploces. b. Compute the cost of preferred stock, KP Note: Do not round intermediote calculations. Input your answer as a percent rounded to 2 decimal places. c. Compute the cost of common equity in the form of retained earnings, Kc. Note: Do not round intermediate calculations. Input your answer os o percent rounded to 2 decimal places. d. Calculate the weighted cost of each source of capital and the weighted average cost of capital. Note: Do not round intermediate calculations. Input your answers os a percent rounded to 2 decimal places