Mr B. plans to calculate his cost of capital, based on the data below:

Debt: the company gets $500 worth of bank debt, 5 years term, 6% interest. 25% tax rate


Preferred Stock : The company can sell 4% dividend preferred stock with a face value of $50. Preferred stock price $45, flotation cost $1

Common Stock: The company's common stock when sold at $30 per share, next year's dividend is expected to be paid at $3 per share. The company's dividend has grown at a rate of 3% and is expected to grow at that rate forever. Common stock is issued at a discount of $1 and a flotation cost of $1.5.

Based on book value, the proportion of long-term debt is 30%, preferred stock is 20%, common stock is 50%, then calculate:

a. Individual fees for funding

b. Average weighted capital of the Company