Use the following information to answer the next few questions:

Consider a firm that is financed THREE ways: common equity, preferred equity, and long term debt. The firm is considering replacing all of the machinery in its Cleveland plant. They have more than enough cash on hand to pay for the project without raising external capital. Some relevant information about the firm is given below. Based on all THREE sources of funding, what weighted $($three way$)$ cost of capital should the firm use to evaluate the project?

Q

U

T$|$

N

$2$

Stock Price $($common shares$)$

Number of common shares outstanding

Equity beta $($for common stock$)$

$$15$

$5$M

$2\mathrm{.}5$

Stock Price $($preferred shares$)$

Number of preferred shares outstanding

Dividends per share on preferred stock

$$8$

$10$M

$$1\mathrm{.}00$

Market value of Total Debt outstanding

Yield to maturity on the firm's long term debt

Coupon rate on the firms long term debt

$50$M

$6\mathrm{.}5\%$

$2\mathrm{.}0\%$

Corporate tax rate

$35\%$

Risk$-$free rate

$4\mathrm{.}5\%$

Market Risk Premium

$5\mathrm{.}5\%$

$1.$ Using CAPM, what is the firms cost of common equity?

Answer in percent so if you think the answer is $36\%$ enter $36$

$2.$ Using the dividend valuation model for preferred equity, what is the cost of equity for the preferred shares? Answer in percent so if you think the answer is $36\%$ enter $36.$

$3.$What is the firms pre$-$tax cost of debt?

$4.$ Using the market value of debt, common, and preferred shares all together, what is the firm's WACC based on all three sources of capital? Answer in percent so if you think the answer is $36\%$ enter $36.$