Suppose a company raised $3,000,000 to fund its expansion. It expects the sustainable growth to be 3% a year.

It sold 100 20-year corporate bonds with a $10,000 par value and a 4% coupon rate at the market price of $10,200. The flotation cost is 2% of par value.

The corporate income tax rate is 25%.

It issued 100,000 new preferred shares at $10.30/share. It promises a $0.60/share annual dividend. The flotation cost is $0.30/share.

The company also issued 20,000 new common shares at $51/share. The flotation cost is $1/share. Its next dividend is $2.5/share.

Before-tax cost of capital from bond = %

After-tax cost of capital from bond (r_d) = %

Cost of capital from preferred stock (r_p) = %

Cost of capital from common stock (r_n) = %

The weighted average cost of capital is (r_a) = %.