Not sure how the present value (PV) or payment (PMT) was computed

The following information has been published for Brainwacker manufacturing corp. as of March 31, 2016:

a.Loan: The company states that it currently has a newly issued $10 million bank loan at a rate of 8%.

b.Debt: The firm has 8 years remaining on 10% 20-year bond with a face of $50 million and a yield to maturity of 7.45%.

c.Preferred Stock: The companys preferred stock sells for $88 per share and pays an annual dividend of $11 per share. There are 1million shares outstanding.

d.Common Equity: The companys common stock sells for $56 per share and is expected to pay a dividend of $4 per share by the end of this year (i.e. D1=$4.00). The dividend is expected to grow at a constant rate of 7% a year. The yield on Treasury Bills is 5.1% while the market risk premium is believed to be 6%. Jo-Jos is an aggressive stock with a Beta of 1.5. There are 8 million shares outstanding.

e.The companys tax rate is 35%

Compute the cost of capital for each component and the Weighted Average Cost of Capital (WACC). Show all work.

Weights: Bank Loan: 1Omillion (given) Bond: 50,000,000 Face value, therefore 50,000 bonds of 1,000 FV N.8, i#7.45, PMT-100, PV_-1,149.65 Market Value 50,000 x 1149.65 = 57.482.402.70 57.5million Preferred: Mkt.Val. = price x #outstanding 88 x 1mil. 88million Common: MkLVal.-price x #outstanding-56 x 8mil. = 448million Total Mkt Value of the Firm-10+57.5+88+448 603.5 Component Costs: 08 (given) Loan (1-tax rate) rbond .0745 (YTM) Bond (1-tax rate) Po 88 stock-rf + ?(rm-rf) rstock =5.1+ (1.5)(6) =14.1% =1410 or +.07 1414 WACC#10 (1-35)(.08) + 57.5 (1-35)(0745)+88 (.1250)+ 448 (.1410) 603.5 603.5 603.5 603.5 WACC .0009-.0046 + .0 182 + . 1047 = . 1284 = 12.84