Phillips Eqiupment has the following financial information: 100,000 bonds, par value is $1,000, coupon rate is 4.5%, annual coupon, mature in 10 years, price is $800. 1,000,000 shares of 5.5% preferred stock. $100 par value per share, selling for $60 per share. 2,200,000 shares of common stock outstanding. Beta of 1.15. Sells for $50 a share. Recent annual dividend was $2.20 and projected growth rate is 6%. Other info: The U.S. Treasury bill is yielding 4 percent. Return on market is 10 percent. Corporate tax rate is 23 percent.

Round everything to 4 decimal places

a) What is the after-tax cost of debt? b) What is the cost of preferred? c) What is the cost of equity using the CAPM/SML? d) What is the cost of equity using the Gordon Constant Growth Model? e) In calculating the weighted average cost of capital according to market values, what is the weight for debt? do not calculate WACC