$1.$You have estimated the after$-$tax cost of debt to be $4\%,$ the cost of preferred to be $5\mathrm{.}8\%$ and the cost of common to be $8\mathrm{.}8\%.$ Your firm obtains $40\%$ of its financing from long$-$term debt, $20\%$ of its financing from preferred stock and $40\%$ of its financing from common stock. Calculate the firms cost of capital$\mathrm{.}2.$Draw and completely label the cost of capital curve and the value of the firm curve as the firm increases their debt$/$equity ratio from $0$ towards infinity. Note that you will need to draw two graphs. The first should be the cost of capital including $3$ specific curves $($cost of debt, cost of equity, and cost of capital$).$ The second should be the value of the firm. Both curves should identify the approximate range of the target capital structure