The following is taken from Sampson Athletic Wear Ltd.s most recent balance sheet:

Long term bonds (par value)		$ 46,000,000
Preferred stock (par value)		38,000,000
Common equity
Common stock	$20,000,000
Retained earnings	50,000,000	70,000,000
		$154,000,000

The companys bonds trade and their yield-to-maturity is 7.5%. They have a coupon rate of 8% and mature in 15 years. Interest is paid semi-annually. New bonds would be issued at par. The preferred stock has a fixed divided rate of 7.8% and a par value of $25 per share. Their current market value is $22 per share. New preferred stock would be issued at their par value and would net the firm $24.25 after flotation costs. The company has 8.4 million common shares outstanding with a market value of $13 per share. They expect to pay a dividend of $0.80 at year end and the dividend growth rate is expected to be 6%. The firm has a beta of 1.4. The current yield on government T-bills is 3.5% and the yield on long-term government bonds is 5%. The return on the market portfolio is expected to be 11%. Sampson uses an average of three methods to estimate its cost of equity. Assume the companys common equity is from internal sources. Sampson Athletic Wears corporate tax rate is 30%. Required: a. Compute Sampson Athletic Wears cost of equity, cost of preferred and cost of debt. Show all calculations. b. Compute Sampson Athletic Wears weighting of equity, preferred and debt for the purposes of calculating its WACC. Show all calculations. c. Compute Sampson Athletic Wears weighted average cost of capital. Show all calculations.