MECAB is a large, publicly traded firm that is the market share leader in Electric Cables manufacturing and distribution. The current market data on MECAB securities is as follows:

Debt:					130,000 7 percent coupon bonds outstanding, 15 years to maturity, selling for 94 percent of par; with a $100 par value and making semiannual payments.
Common stock:					6,000,000 shares outstanding, selling for 52 per share; the beta is 1.2.
Preferred stock:					300,000 shares of preferred stock outstanding, paying a dividend of 7.35 and selling for 90 per share.
Market:					7 percent expected market risk premium; 4 percent risk-free rate.
MECABs tax rate is 35 percent.
	1.		What are the market values of the individual capital components?
	2.		What are MECABs capital structure weights?
	3.		What is the cost of common stock?
	4.		What is the cost of preferred stock?
	5.		What is the cost of debt?
	6.		What is the weighted average cost of capital?