SUNSHINE Corporation is estimating WACC. Its target capital structure is 30 percent debt, 10 percent preffered stock, and 60 percent common equity. Its bonds have 11 percent coupon, paid semianually, a current maturity of 25 years, and sell for $1,050. The firm could sell, at par, $100 preferred stock which pays a 10 percent annual dividend, with flotation costs of 3 percent. Sunshine beta is 1.3, the risk-free rate is 10 percent, and the market risk premium is 5 percent. SUNSHINE is a constant-growth firm which just paid a dividend of $1.20, sells for $20.00 per share, and has a growth rate of 4 percent. The firm's policy is to use a risk premium of 4 percentage points when using the bond-yield-plus-risk-premium method to find rs. The firm's marginal tax rate is 38 percent.

1. What is the firm's component cost of debt?
2. What is the firm's cost of preferred stock?
3. What is the firm's cost of common (rs) using the CAPM approach?
4. What is the firm's cost of common (rs) using the DCF approach?
5. What is the firm's cost of common stock using the bond-yield-plus-risk premium approach?

What is the firm's WACC (assume using CAPM to find out cost of equity)?