Pure Michigan issued a bond with the following features:

Maturity: $15$ years from today

Coupon rate $7\mathrm{.}0\%$ per annum, but paid semi$-$annually

Par Value: $$1,000$

Each bond was sold today for $$913\mathrm{.}54$ but had to pay $4\mathrm{.}0\%$ flotation expenses.

A total of $328$ bonds were sold.

What is the Yield$-$to$-$Maturity $($YTM$)$ or before$-$tax Cost of DEBT? $[$Make sure to annualize the rate$]$ Use a Financial Calculator.

Pure Michigan also issued Common Stocks.

Common Stocks were sold at $$35\mathrm{.}00$ per share but had to pay $9\mathrm{.}0\%$ in flotation expenses.

A total of $17,143$ shares are outstanding

Dividend just paid $=$$$3\mathrm{.}25$

Dividend Payout Ratio $=30\mathrm{.}0\%$

ROE: $7\mathrm{.}5\%$

What is the cost of equity?

What is Pure Michigan's Cost of Capital $($WACC$)?$

Their marginal tax rate $=30\mathrm{.}0\%$

Formulas:

$g$ ROE $(1-$ Payout $)$

$D_1=D_0(1+g)$

WACC$=W_{D}x{r}_{D}x(1-t)+W_s{r}_s$