Please calculate the company's Cost of Capital by first reading the following scenario and completing parts a-d which follow:

Bradbury Breathe Easy Inc. needs to raise additional funds. Their corporate bylaws suggest a mix of 40% debt, 5% preferred stock and 55% common stock. The company is in the 30% tax bracket.

a. Its bonds have a 9% coupon rate, paid semi-annually, a current maturity of 15 years and sell for $940.25. What is the firm's AFTER TAX cost associated with these bonds?

b. The company can issue preferred shares of stock at $75 per share and pay a 10% dividend. Please calculate the cost of issuing preferred shares?

c. Finally, the company can issue common stock at $85 per share. The dividend has grown consistently for the past ten years at 6%. Next year they expect to issue a dividend of $3.50. What is the cost of common stock?

d.Calculate the weighted average cost of capital for Bradbury Breathe Easy Inc. using the target capital structure weights aforementioned for debt, preferred stock and common equity.