A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital.

5 years ago the company issued non-callable bonds that pays semiannual payment with 6% annual coupon rate and sold them at par value ($1,000) however each bond is currently selling at $980.65 and has 15 years remaining to maturity.

tax rate is 40% the company's beta is .8 assume that the market risk free rate is 3.0% and the market risk premium is 5.0%

company's current stock price is $97.07, it's growth rate is 4% and it's expected earnings per share (eps1) is $3.640 the company retains 20% of its earnings to fund future growth.

calculate a) cost of debt b) cost of equity using CAPM approach c) cost of equity using the DCF approach d) weighted average cost of capital WACC