3. WB Inc. is funded by common & preferred equity and long-term debt and is subject to a 21% tax rate. Its common equity comprises 40% of its capital structure, while its preferred equity makes up 10% and debt is the remaining 50% of capital. The equity market commands a risk premium of 8%, and WB's beta is 1.2. WB's preferred shares cost $50 and pay a $5 annual dividend. Its long-term $1,000 bonds sell at par value and pay a $50 annual dividend semi-annually, in an environment where the risk free rate is 2.5%. a. What is WB's cost of common equity? b. What is WB's cost of preferred equity? c. What is WB's cost of debt? d. What is WB's WACC?