You have collected the following information for Santa clause Enterprises.

Equity: The company has 1000 shares of common stock outstanding at a current price of $40 a share. The stock has a beta of 1.21. The market risk premium is 8% and the risk-free rate is 3%.

Debt: The firm also 20 bonds outstanding. Each bond has a face value of $1000, annual coupon on 6%, maturity of eight years. The current price of the bond is $1031.

Preferred shares: The company has 400 shares of preferred stock at a current price of $50 per share. The preferred shares pay a dividend of $5 per share annually.

Tax rate: The company has a tax rate of 35 percent.

A. Using the capital asset pricing model, what is the companys cost of equity? Show details of your calculations in the space provided below:

B. What is the companys post-tax cost of debt: Show details of your calculations in the space provided below:

C. What is the cost of preferred shares? Show details of your calculations in the space provided below:

D. What is the weighted average cost of capital for the company? Show details of your calculations in the space provided below: