Hollister & Hollister (H&H) is considering a new project. The project will require $492,000 for new fixed assets, $196,000 for additional inventory, and $31,000 for additional accounts receivable. Short-term debt (accounts payable/notes payable) is expected to increase by $151,000. The project has a 4-year life. The fixed assets will be depreciated under the three-year MACRS schedule to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 18% of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $929,000 with costs equal to 55% of revenues. H&Hs corporate tax rate is 32%.

H&H has 29,600 bonds outstanding with a 6.49% coupon rate, paid semi-annually, and 17 years left until maturity. These bonds are currently selling at 98% of par. They also have 1.9 million common shares outstanding that are currently selling at $9.55/share. H&H recently paid a dividend in the amount of $1.54, and dividends are expected to grow at a constant 2.9%.

What is the cost of equity for H&H? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

What is the pre-tax cost of debt for H&H? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).

What is the weighted average cost of capital for H&H? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).