long$-$term debt, $25\%$ preferred stock, and $40\%$ common stock equity $($retained earnings, new common stock, or both$).$ The firm's tax rate is $28\%.$

Debt The firm can sell for $$1010$ a $17-$year, $$1,000-$par$-$value bond paying annual interest at a $8\mathrm{.}00\%$ coupon rate. A flotation cost of $3\mathrm{.}5\%$ of the par value is required.

Preferred stock $7\mathrm{.}00\%($annual dividend$)$ preferred stock having a par value of $$100$ can be sold for $$92.$ An additional fee of $$4$ per share must be paid to the underwriters. wants to issue new new common stock, it will sell them $$2\mathrm{.}50$ below the current market price to attract investors, and the company will pay $$3\mathrm{.}00$ per share in flotation costs.

a$.$ Calculate the after$-$tax cost of debt.

b$.$ Calculate the cost of preferred stock

c$.$ Calculate the cost of common stock $($both retained earnings and new common stock$).$

d$.$ Calculate the WACC for Dillon Labs.