What is the cost of preferred stock given the following information: 10% preferred stock issue, sold at par value of $40 per share with flotation costs of $3 per share?

DEF Inc. has a stock with a beta of 1.3. You estimate that the equity risk premium is 5%, and that the current risk-free rate is 4%. DEF has $30 million outstanding in debt, and its common stock has a market capitalization of $50 million. It expects to issue a similar proportion of debt to equity going forward. If the YTM on DEF bonds is 6% and its tax rate is 21%, what is its WACC?