Use the following information to answer Question 1 through 3: Kim Inc. has a target capital structure of 35% of debt, 15% preferred stock, and 50% in common equity. Firm As before-tax (pretax) cost of debt is 8% and the firms marginal tax rate is 25%. The beta of the firms common equity is 1.5 the market risk premium (MRP) is 7% and the U.S. risk-free rate is 6%. The price of per share of Kim Inc.s preferred stock is $15 and it pays a preferred dividend of $1.80 per share.

1) Using the CAPM approach the cost of common equity of Kim Inc. is

2) The cost of preferred stock of Kim Inc. is

3) Kim Inc.s Weighted Average Cost of Capital (WACC) is