You are given the following information for United Aircraft. Assume the company’s tax rate is 30%.

Preferred Stock: 26,000 shares of preferred stock outstanding, with a dividend of $6.00. The preferred stock currently sells for $105 per share

Common Stock: 500,000 shares outstanding, selling at $75 per share. The current dividend is $3.00 per share, and the dividend is expected to grow at 4%

Debt: 8,000 bonds outstanding. They have a 4.8% coupon, $1,000 par value, 15 years to maturity, selling for 93% of par; coupons are paid semi-annually

A. What are the required returns for Common Stock, Preferred Stock and Debt?

B. What is the WACC for United Aircraft?