Problem 21-01 HBM, Inc has the following capital structure: Assets $400,000 Debt $140,000 Preferred stock 40,000 Common stock 220,000 The common stock is currently selling for $17 a share, pays a cash dividend of $0.70 per share, and is growing annually at 5 percent. The preferred stock pays a $9 cash dividend and currently sells for $93 a share. The debt pays interest of 7.5 percent annually, and the firm is in the 30 percent marginal tax bracket. a. What is the after-tax cost of debt? Round your answer to two decimal places. b. What is the cost of preferred stock? Round your answer to two decimal places. % c. What is the cost of common stock? Assume that the current $0.70 dividend grows by 5 percent during the year. Round your answer to two decimal places. % d. What is the firm's weighted average cost of capital? Round your answer to two decimal places