XYZ company has outstanding bonds which last 12 years from now. The bonds price is 110% above par. The coupon per year is $ 80 and the face value bond is $ 1,000. The company also pays out a dividend of $ 2 per share and a growth rate of 5% per annum forever. The share price is $ 50 and the bet is 1.08. 5% market risk premium and 4% risk free rate. The company uses 60% debt and 40% equity, and the tax rate is 35%. A). Calculate the cost of debt. B). Calculate the estimated cost of equity. C). Calculate the WACC.