The CFO of Wills Hornets Inc. is calculating the WACC of the company. She collects the following facts: - The company's long-term bonds currently offer a yield to maturity of 8.0%. - The company's stock price is $27.8 per share and will pay a dividend of $2 per share at the end of the year, and which is expected to grow at a constant rate of 6.0% per year. - The company preference shares currently trade at $40.7 per share and pay a preference dividend of 10.0% on a par value of $50. - The company's capital structure is 65.0% common equity, 10.0% preference shares, and 25.0% debt. - The company's tax rate is 35.5%. 1. What is the cost of equity? % (Give answer as % to 2 decimal places) 2. What is the cost of preference shares? % (Give answer as \% to 2 decimal places) 3. What is the company's WACC? \% (Give answer as \% to 2 decimal places)