You are responsible for estimating Montgomery Inc.'s WACC. Here are some facts:

• The marginal tax rate = 0.30.
• Montgomery 8% semiannual bonds are trading at $748.99 with 12 years left to maturity.
• Montgomery 10% preferred (annual) stock with 100 par value is trading at $108.
• Montgomery common stock is trading at $80 per share.
• The last dividend paid by Montgomery was $7.62.
• The growth rate in dividends is expected to be five percent indefinitely.
• Montgomery's beta is 2.2 

• The current T-bill yield is 4%
• The Market risk premium is 5%.
• Montgomery sometimes uses the bond-yield-plus-risk-premium approach, and when it does, it uses a risk premium of 2.64%.
• If Montgomery issues new common stick, it will face flotation costs of 15%
• Montgomery's optimal capital structure is 40%/10%/50% across debt, preferred stock and equity, respectively.
• Montgomery currently has $1,000,000 mil in the retained earnings account.

Please calculate (showing all work):

a) (12) Montgomery's component cost of debt

b) (6) Montgomery's component cost of preferred stock.

c) (33) The NPC of project C, which would cost $80 today, and pay a cash flow of $30 each year over the next 3 years.