Suppose Westerfield Co. has the following financial information:

Debt: 200,000 bonds outstanding with a face value of $1,000. The bonds currently trade at 106% of par and have 20 years to maturity. The coupon rate equals 3%, and the bonds make semiannual interest payments.

Preferred stock: 250,000 shares of preferred stock outstanding; currently trading for $118 per share and it pays a dividend of $5.45 per share every year.

Common stock: 5,000,000 shares of common stock outstanding; currently trading for $65 per share. Beta equals 0.88.

Market and firm information: The expected return on the market is 10%, the risk-free rate is 2%, the tax rate is 21%.

4- Calculate the after-tax cost of debt. (Enter percentages as decimals and round to 4 decimals)

5- Calculate the cost of preferred stock. (Enter percentages as decimals and round to 4 decimals)

6- Calculate the cost of common stock. (Enter percentages as decimals and round to 4 decimals)

7- Calculate the weighted average cost of capital. (Enter percentages as decimals and round to 4 decimals)