MWS has 3.5m common shares outstanding that currently trade at $22 per share. 150,000 preferred shares outstanding that pay 12% dividend and were issued at $100 par but currently trade at $140 per share. MWS has 40m in debt that pays a 10% coupon that currently trades at par. Beta is 1.7 according to CAPM. required rate of return on the market is 8%, the risk free rate is 2% and MWS faces a 21% marginal tax rate. Ignore flotation cost.

Calculate cost of common stock

Calculate cost of preferred stock

Calculate cost of debt

Calculate WACC