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Lumber Corp's common stock trades at a price of $ 5 6 . 9 1 per share. The most recent dividend was $ 1 .

Lumber Corp's common stock trades at a price of $56.91 per share. The most recent dividend was $1.16 per share and it is expected to grow by 4% per year. Flotation costs for common stock have been estimated at 11%, while bonds and preferred stock are sold in private placements and have negligible flotation costs.
The company's preferred stock is selling at $97.17 and has an annual dividend of $4.
Lumber Corp. has bonds outstanding with an average coupon rate of 12% and an average yield to maturity of 9%.
The firm's optimum capital structure is 50% equity, 10% preferred stock and 40% debt, and its tax rate is 32%
What is the (after-tax) cost of debt?
What is the cost of preferred stock?
What is the cost of retained earnings?
What is the cost of new common stock?
What is the weighted average cost of capital, assuming the company doesn't have to issue any new common stock?

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