Important: Please type the number without the comma sign. Keep 2 decimal places. Davis Inc. has raised a total of $100 million for projects ($30 million from bond issues, $55 million in stock (IPO) and $15 million in preferred stock). The bonds have 9 years left to maturity, are 12% semiannual bonds with a face value of $1,000, and sell for $1,100 in the secondary market. The company's stock is expected to pay a dividend of $2.5 next year, and is trading at $32 on the NYSE. Flotation costs will represent 6% of the funds raised by issuing new common stock. The company's growth rate is estimated at 8%. The company's preferred stock is trading at $105 and will pay a dividend of $5 next year. The firm's tax rate is 40%.(14 points) Cost of debt N= PMT= FV= PV= i= % Cost of preferred stock= % Cost of equity % WACC= %