METRA is considering building a new train line from Chicago to Utopia. Use the following information to help Metra determine their cost of capital to assess the project:

$$ Debt totals $$150$ million with a $4\mathrm{.}5\%$ coupon and has been outstanding for $2$ years

$$ METRA$$s total Enterprise Value is $$400$ million

$$ Bonds similar to METRA$$s existing debt are currently priced at $101\mathrm{.}5$

$$ The common stock will pay an annual dividend of $$1\mathrm{.}20$ next year, and is expected to grow by $2\mathrm{.}5\%$ per year

$$ METRA pays a corporate tax rate of $20\%.$

$$ The risk$-$free rate is $3\%,$ the market return is $8\%$

$$ Metra$$s common stock Beta is $1\mathrm{.}4$

a$.$ What debt and equity weights will Metra use to calculate WACC? $(4$ pts$)$

b$.$ What is METRA$$s cost of debt? $(4$ pts$)$

c$.$ What is METRA$$s cost of common equity? $(5$ pts$)$

d$.$ What is METRA$$s WACC?