Peterson Inc. announced that next year's annual dividend for common stock will be $1.11, after which dividends are expected to grow at 4.7 percent each year. There are 243,500 shares of common stock outstanding, and each sells for $39 on the market today.

Calculate the firm's cost of equity.

Peterson Inc. has 13% preferred stock with a par value of $100. There are 148,000 shares outstanding, and the current price of preferred stock is $75.

Calculate the firm's cost of preferred stock.

Peterson Inc. has 8,500 bonds outstanding with a coupon rate of 8.5 percent. Coupons are paid semiannually. The bonds were issued 5 years ago with a face value of $1,000 and a maturity of 17 years. Today the bonds sell at 89 percent of par.

Calculate the firm's pretax cost of debt.

What is the weight of preferred stock?

Peterson, Inc. is subject to a 21 percent tax rate. Calculate the firm's Weighted Average Cost of Capital.