Lang Enterprises is interested in measuring its overall cost of capital. Current investigation has gathered the following data. The firm is in the 40% tax bracket. DEBT: The firm can raise debt by selling $1,000 par value, 8% coupon interest rate, 20 year bonds on which annual interest payments will be made. To sell the issue, an average discount of $30 per bond would have to be given. The firm also must pay flotation costs of $30 per bond. PREFERRED STOCK: The firm can sell 8% preferred stok at its $95 per share par value. the cost of issuing and selling the preferred stock is expected to be $5 per share. Preferred stock can be sold under these terms. COMMON STOCK: The firm's common stock is currently selling for $90 per share. The firm expects to pay cash dividends of $7 per share next year. The firm's dividends have been growing at an annual rate of 6% and this growth is expected to continue into the future. The stock must be underpriced by $7 per share, and flotation costs are expected to amount to $5 per share. The firm can sell new common stock under these terms. RETAINED EARNINGS: When measuring this cost, the firm does not have concern itself with the tax racket or brokerage fees of owners. It expects to have available $100,000 of retained earnings in the coming year'; once these retained earnings are exhausted, the firm will use new common stock as the form of common stock equity financing. a. Calculate the after-tax cost of debt. b. Calculate the cost of preferred stock. c. Calculate the cosst of common stock,. d Calculate the firm's weighted average cost of capital using he capital structure weights shown in teh following table. (Round answer to the nearest 0.1%) Source of Capital Weight Long-Term Debt 30% Preferred Stock 20 Common Stock Equity 50 Total 100%