Calculation of individual costs and WACC ??Dillon Labs has askedits financial manager to measure the cost of each specific type ofcapital as well as the weighted average cost of capital. Theweighted average cost is to be measured by using the followingweights: 50% long-term debt, 15% preferred stock, and 35% commonstock equity (retained earnings, new common stock, or both). Thefirm's tax rate is 21%. Debt The firm can sell for $1015 a 12-year,$1,000-par-value bond paying annual interest at a 7.00% couponrate. A flotation cost of 2% of the par value is required.Preferred stock?7.00% (annual dividend) preferred stock having apar value of $100 can be sold for $96. An additional fee of $2 pershare must be paid to the underwriters. Common stock??The firm'scommon stock is currently selling for $59.43 per share. The stockhas paid a dividend that has gradually increased for many years,rising from $3.00 ten years ago to the $5.90 dividend payment, D 0,that the company just recently made. If the company wants to issuenew new common stock, it will sell them $1.50 below the currentmarket price to attract investors, and the company will pay $2.50per share in flotation costs.?? a.??Calculate the after-tax cost ofdebt. b.??Calculate the cost of preferred stock. c.??Calculate thecost of common stock (both retained earnings and new common stock).d.??Calculate the WACC for Dillon Labs