Question 4 (8 points). M\&M Corp. has the following information: Debt: 10,0007% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 1090 ; the bonds make annual payments. Preferred stock: 30,000 preferred shares outstanding, currently selling for $60 per share. The annual dividend of preferred stock is $3.0. Common stock: 500,000 shares outstanding, selling for $65 per share; the beta is 1.25 . The market risk premium is 7% and the risk-free rate is 3.5%. The corporate tax rate is 35%. a. Calculate the cost of debt, cost of preferred stock, and cost of equity? ( 3 points) b. Calculate the market values of debt, preferred stock, and equity? (3 points) c. Calculate the WACC? (2 points)