Victoria Corporation has 6.4 million shares of common stock outstanding; 200,000 shares of preferred stock outstanding par value of $100 and dividend of $3.8; and 120,000 issued bonds with a semiannual coupon of 4.8 percent outstanding, par value of $1000 each. The common stock currently sells for $54 per share and has a beta of 1.08, the preferred stock currently sells for $103 per share, and the bonds have 15 years to maturity and sell for 107 percent of par. The market risk premium is 7.5 percent, the risk-free rate yields 2.4 percent, and the firm's tax rate is 22 percent.

a. What is Victorias market capital structure? Or the weight of equity, debt, and preferred stock.

b. What is Victorias cost of capital based on market capital structure?