Ink Inc. has target capital structure of 10% preferred stock, 50%

common equity, and 40% debt. Ink has outstanding 20 year annual,

6% coupon bonds selling for $894. The par value of the bonds is

$1,000. Inks common stock sells for $50 per share and is expected

to grow at 8% and expected to pay a $2 dividend next year. If Ink

sells new common it must pay a $5 flotation fee. Inks preferred

stock currently sells for $95, and its annual dividend is $5 per

share. If Ink were to sell new preferred, it would pay $5 per

share as flotation cost. Inks tax rate is 40%.

What is Inks after-tax cost of debt capital?

What is Inks cost of preferred stock capital?

What is Inks cost of common stock?

What is the firm's WACC for the capital?