$(15$ Percent$)$ Faster Engineering Inc. $($FEI$)$ has the following capital structure, which it considers

to be optimal:

FEI's expected net income this year is $$34,285\mathrm{.}72,$ its established dividend payout ratio is $30\%,$ its

federal$-$plus$-$state tax rate is $25\%,$ and investors expect future earnings and dividends to grow at a

constant rate of $7\mathrm{.}5\%.$ LEI paid a dividend of $$4\mathrm{.}20$ per share last year, and its stock currently sells

for $$54\mathrm{.}00$ per share. FEI can obtain new capital in the following ways:

$(1)$New preferred stock with a dividend of $$12\mathrm{.}00$ can be sold to the public at a price of $$80\mathrm{.}00$ per

share. $(2)$Debt can be sold at an interest rate of $11\%.$

a$.$ Determine the cost of each capital component.

b$.$ Calculate the WACC.