Mr$.$ Velasco's Classroom Inc. currently has $30,000$ of its $9\%$ semiannual coupon bonds outstanding $($Par value $=1,000).$ The bonds will mature in fifteen years and are currently priced at $$1,340$ per bond. The firm also has an issue of $1$ million preferred shares outstanding with a market price of $$11\mathrm{.}00.$ The preferred shares offer an annual dividend of $$1\mathrm{.}20.$ Velasco Inc. also has $2$ million shares of common stock outstanding with a price of $$30\mathrm{.}00$ per share. The firm is expected to pay a $$3\mathrm{.}20$ common dividend one year from today, and that dividend is expected to increase by $7\%$ per year forever. The firm typically pays floatation costs $($which is a fancy name for commission$)$ of $2\%$ of the price on all newly issued securities $($BOTH stocks and bonds, don't forget!$).$ If the firm is subject to a $35\%$ marginal tax rate, then what is the firm$$s weighted average cost of capital?

$1.$What's the cost of debt $($before tax$)?$

$2.$What's the cost of preferred stock after floatation cost?

$3.$What's the cost of common stock after floatation cost if you use the constant dividend growth model $($Gordon Model$)?$

$4.$What is the market value weight of each of the three components of WACC $($debt$,$ preferreds, common$)?$

$5.$What is the WACC, make sure it's after tax $($so calculate the after tax cost of debt to arrive at WACC$)?$