Laurance Bowling has its capital structure where debt is 2.5 million, preferred stock is 1.5 million and common stock is 3 million. The corporate tax rate is 35%. Price, preferred is $91 and dividend, preferred is $3.5. Preferred flotation cost is $2.5. Dividend last year common(D0) is $3.1, Dividend at the end of the first year, common(D1) is $3.6. Price, common is $58. YTM is 12%

a. Calculate the cost of equity. (Note: Answer must be in % value two decimal point; Example: 2.12%)

b. Calculate the cost of debt. (Note: Answer must be in % value two decimal point; Example: 2.12%)

c. Calculate Weighted Average Cost of Capital (Note: Answer must be in % value two decimal point; Example: 2.12%