The management of Jetson Company believes that the following capital structure is optimal:

Components	$ value
Bond, coupon 8% (now selling at $1075, has 14 years to the maturity and the face value of $1,000)	715,000
Preferred stock (dividend per share = $5.00)	249,000
Common stock	371,000
Retained Earnings	326,000
Total	1,661,000

Dividends on common stock are currently $3 per share, and they are expected to grow at a constant rate of 6 percent. The Jetson Company's common stock is currently selling at $40, and the preferred stock is selling at $50. The Flotation cost on new issues of common stock is 10 percent, and the interest on bonds is paid semi-annually. The return on the market portfolio is 12.1 percent, the risk-free rate is 3 percent, and the company's beta coefficient is 1.22. The company's tax rate is 40 percent.

Calculate the following using excel and show all formulas:

• the after-tax cost of bonds
• the cost of preferred stock
• the cost of retained earnings
• the cost of new common stock
• the best estimate of the company's WACC
• the capital structure of this company