Northwest Utity Company faces increasing needs for capital. Fortunately, it has an Aa3 credit rating. The corporate tax rate is 30 percent. Northwest's treasuret is trying to determine the corporation's current weighted average cost of capital in order to assess the profitability of capital budgeting progects Historically, the corporation's earnings and dividends per share have increased about 76 percent annually and this should continue in the future. Northwest's common stock is seling at $68 per share, and the company will pay a $520 per share dividend (O1) The companys $104 prefered stock has been yielding 5 percent in the current market. Flotation costs for the company have been estimated by its investment banker to be $200 for preferred stock The company's optimum capital structure is 30 percent debt, 25 percent preferred stock, and 45 percent common equity in the form of retained earnings. Refer to the following table on bond issues for comparative yelds on bonds of equal risk to Northwest 0. Compute the cost of debt, Kd (Use the accompanyang table - relate to the utilty bond credit rating for yeid) (Do not round intermediate calculotions. Input your onswer os o percent rounded to 2 decimal places.) b. Compute the cost of preferred stock, Xp (Do not round intermediote colculations. Input your answer as a percent rounded to 2 decimal places.)