WACC is 8.5%, but I don't know how to get this number. Also, please show me how to solve for the cost of equity by Gordon Model. For the cost of debt, YTM is not coupon rate.

please show answers with step-by-step explanations. Thanks.

(1) A firm has an outstanding debt issue of $400MM book value, selling in the bond market at 133% of par. ralue. The bonds have a 10\% coupon and 15 years maturity. They are. noncallable with no other unusual features. No shortterm financing (2) The firm has outstanding preferred stock of \$100 per value, with an annual stated dividend. of 8%, that was priced yesterday on. the NYSE at $94.12 per share. There are 2MM. hares. outstanding. (3) The fimm's common stock pays an annual dividend of $2.25/ share. The stock trades on the NYSE or was quoted yesterday at $60.75/ share. There are 10MM share outstanding (4) For. 1999-2008, the stock paid dividends of 100,110,1.20,1.30,1.40, 1.50,1.65,1.75,1.90,2.05. respectively.. (5) other data: the firm's tax rate is 40%=0.85. T-bills currently yield 4\%.. Analyits expect the 5P500 to eam 14% annually for the forsecable future