The firm is in the 40% tax bracket. The optimal capital structure is listed below: Source of Capital Long-Term Debt $25000 Preferred Stock $20000 Common Stock $55000 Debt: The firm can issue $1000 par value, 8% coupon interest bonds with a 20 year maturity date. The bond has an average discount of 3% and flotation costs of $4.5% per bond.

Preferred Stock: The firm can sell preferred stock with a dividend that is 8% of the current price. The stock costs $90. The cost of issuing and selling the stock is expected to be 5% per share.

Common Stock: The firm's common stock is currently selling for $100 per share. The firm expects to pay cash dividends of 7% per share next year. The dividends have been growing at 6%. The stock must be discounted by 2% and flotation costs are expected to amount to 5% per share.

a) what is the after cost of debt? b) What is the cost of preferred stock? c) what is the cost of equity? d) Calculate WACC?