Fair and Equitable has to determine its cost of capital using the following in

Fair and Equitable has to determine its cost of capital using the following information:

The firm has $30000000 in corporate bonds currently selling at 97.5. The bonds mature in 9 years and have an annual coupon rate of 6.6% paid semiannually.
F&E faces a 35% tax rate. This firm has 1500000 shares of preferred stock that pays a dividend of $0.80 per year and currently sells for $9.00 per share.

Common stock selling for $3.45 per share has just paid a dividend of $0.29 and is expected to grow by 4% forever. The firm has a beta of 1.3 and the risk free
rate on treasury securities is 3%. The average return on the S&P500 is 10.54%.

Calculate the cost of capital for the firm. Fair and Equitable has 20 million common shares outstanding.