Long Bean Ltd has the following capital structure, which it considers optimal
Bond, 7% (now selling at par) $300,000
Preferred stock, $4.00 (Dividend) $240,000
Common Stock $360,000
Retained earnings $300,000
Dividends on common stock are currently $3 per share and are expected to grow at a constant rate of 6%. Market price per share of common stock is $40, and the preferred stock is selling at $50. The interest on bonds is paid annually. The tax rate is 40%

Required
Calculate the cost of bonds
Calculate the cost of the preferred stock
Calculate the cost of the retained earnings
Estimate the weighted average cost of the capital