KB Corp. has $5\mathrm{.}1$ million shares of common stock outstanding, $379,000$ shares of $3\mathrm{.}5$ percent preferred stock outstanding and $120,0004\mathrm{.}2$ percent semiannual bonds outstanding, par value of $$1,000$ each. The common stock currently sells for $$34$ per share and has a beta of $1\mathrm{.}05,$ the preferred stock currently sells for $$88$ per share, and the bonds have $20-$years to maturity and sell for $103$ percent of par. The market risk premium is $6$ percent, T$-$bills are yielding $1\mathrm{.}6$ percent, and the company's tax rate is $35$ percent.

What is the afer tax cost of debt?

a$.1\mathrm{.}99\%$

b$.2\mathrm{.}99\%$

c$.2\mathrm{.}58\%$

d$.4\mathrm{.}00\%$

What is the cost of preferred stock?

a$.3\mathrm{.}5\%$

b$.2\mathrm{.}5\%$

c$.3\mathrm{.}97\%$

d$.4\mathrm{.}07$&

What is the cost of equity?

a$.1\mathrm{.}05\%$

b$.6\%$

c$.8\mathrm{.}5\%$

d$.7\mathrm{.}9\%$