Pure Michigan issued a bond with the following features:

Maturity: $15$ years

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 YTM or BEFORE$-$TAX Cost of DEBT? $[$Make sure to annualize the rate$]$

Answer Format: for $25\mathrm{.}75\%,$ enter $25\mathrm{.}75,$ not $0\mathrm{.}2575,$ and skip $"\%"$

$2.$ 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?

$3.$ What is Pure Michigan's Cost of Capital $($WACC$)?$

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