a. Calculate the cost of each capital component, that is, the after-tax cost of debt, the cost of preferred stock (including flotation costs), and the cost of equity (ignoring flotation costs). Use both the the CAPM method and the dividend growth approach to find the cost of equity. Cost of debt: N= PMT= PV= FV= 40 $60.00 $1,171.59 $1,000.00 Semiannual yield = RATE = Annual BTrd= Cost of common equity, dividend growth approach (ignoring flotation costs): Cost of common equity, CAPM: rRF+ b RPM g= rs Perform all necessary calculations within this Excel assignment file using Excel Formula. The stock of Dall Computing sells for $50, and last year's dividend was $3.13. Security analysts are projecting that the common dividend will grow at a rate of 7% a year. A flotation cost of 10% would be required to issue new common stock. Dall's preferred stock sells for $32.61, pays a dividend of $3.30 per share, and new preferred stock could be sold with a flotation cost of 8%. The firm has outstanding bonds with 20 years to maturity, a 12% annual coupon rate, semiannual payments, and $1,000 par value. The bonds are trading at $1,171.59. The tax rate is 25%. The market risk premium is 6%, the risk-free rate is 6.5%, and Dall's beta is 1.2 . In its cost-of-capital calculations, Dall uses a target capital structure with 45% debt, 5% preferred stock, and 50% common equity