For its project analysis, Clayton Inc, needs to estimate its cost of capital The company currently has a 10-year $1,000 par bond with coupon rate of 6% coupon is currently sold for $855. the current dividend is $0.65 a share; the dividend is expected to grow at a constant rate of 6% a year; the price of the stock is $15.00 per share; preferred stoc is currently sold for $92 and its divident is $8 per share and the target capital structure is 45% debt and 55% common equity. Clayton's tax rate is 23%;

a) What is the company's cost of bond? b) What is the company's cost of preferred stock? c) What is the company's cost of equity? d) What is the company's weighted average cost of capital? e) If a project has expecetd rate of return of 12%, would you choose this project? Why?