Merton Inc. has 8,500 bonds outstanding with a a face value of $1,000, a coupon rate of 5.50%, and 16 years to maturity. The these are currently selling for $960, which implies a yield-to-maturity of 5.89%. The company also has 38,000 shares of preferred stock that pay perpetual annual dividends of $7.80, which are currently selling for $110. There are 355,000 shares of common stock that are selling for $61 per shares. The stock has a beta of 1.30. The U.S. Treasury bill is yielding 2.2% and the expected long-term return on the market is 8.6%. The marginal corporate tax rate is 21 percent.

what is the implied return on the preferred stock?

what is the required return for the common stockholders ?

what is the weight of total asset held by the bondholders ?

what is the firm weighted cost of capital ?