You are estimating the weighted average cost of capital (WACC) for your company based on the following information:

Common stock: 40 million shares outstanding, $60 market price per share, common stock beta is 0.90, market return is 10.5%, and risk-free rate is 4.0%.

Preferred stock: 10 million shares outstanding, $100 market price per share, quarterly dividend of $1.25.

Debt information: $1.2 billion of debt at face value, quoted price of 90. There is one issue of bonds outstanding with 6% coupon rate, interest paid semi-annually, with 12 years to maturity.

The companys marginal income tax rate is 30%.

Calculate the following returns: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56).

1. Cost of common share equity (%): Answer

2. Cost of preferred share equity (%): Answer

3. Cost of debt (%): Answer

4. Proportion of common share equity (%): Answer

5. Proportion of preferred share equity (%): Answer

6. Proportion of long-term debt (%): Answer

7. Weighted average cost of capital (%):