solve by hand and with steps and explanation

Problem #3 (16 marks) Below is the balance sheet (book value) for JP Products Inc. (JPP). The preferred stock currently sells for $15 per share and the common stock for $20 per share. There are 1,000 common shares and 100 preferred shares outstanding. Bonds are currently selling for $935.80 and have 10 year to maturity. Assets Cash & short term securities Accounts Receivable $1,000 $3,000 Liabilities and Owners Equity Bonds, coupon =8%, $10,000 paid semi-annually Preferred stock (par $2,000 value $20 per share) Common Stock $10,000 Retained earnings $10,000 Total $32,000 Inventories Plant & equipment Total $7,000 $21,000 $32,000 Preferred shares pay a 7.5% dividend. The beta of the common stock is 1.5, the market risk premium is 7%, and the risk free rate is 4%. The company's tax rate is 40% a) What is the JPP's before tax cost of debt? (6 marks) b) What is JPP's cost of preferred shares? (2 marks) c) What is JPP's cost of common equity? (2 marks) d) What are the capital structure (weights) of JPP based on market values? (4 marks) e) What is JPP's weighted average cost of capital? (2 marks)