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Hankins Corporation has 78 million shares of common stock outstanding, 530,000 shares of 73 percent preferred stock outstanding, and 178,000 of 8.5 percent semiannual bonds

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Hankins Corporation has 78 million shares of common stock outstanding, 530,000 shares of 73 percent preferred stock outstanding, and 178,000 of 8.5 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $64 30 per share and has a beta of 123, the preferred stock has a par value of $100 and currently sells for $10770 per share, and the bonds have 14 years to maturity and sell for 94.5 percent of par. The market risk premium is 6.95 percent. T-bills are yielding 5.65 percent, and the firm's tax rate is 40 percent What is the firm's cost of each form of financing (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 3216.) Aftertax cost of debt Cost of preferred stock Cost of equity If the firm is evaluating a new investment project that has the same risk as the firm's typical project, whatrate should the firm use to discount the project's cash flows? (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.10.) Weighted average cost of capital

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