Quest Limited is a major oil and gas exploration company in

Western Australia. It currently has $300 million of market value debt

outstanding, consisting of 9% coupon bonds with a maturity of 15

years. The bonds pay semi-annual coupons. The face value of each bond

is $1,000 and are currently priced at $1,024.87 each. The company also

has an issue of 2 million preference shares outstanding with a market

price of $20 each, paying an annual dividend of $1.20. Quest also

has 14 million ordinary shares outstanding with a price of $25.00 per

share. The company is expected to pay a $2.20 ordinary dividend 1 year

from today, and that dividend is expected to increase by 7% per year

forever. The relevant corporate tax rate is 30%.

a. Calculate the after-tax cost of each of the company's current

financing sources