a. first, locate the individual sources of capital and their percentage after-tax costs all priced at the margin, that is their current cost ... t for the cost of new mortgage money, new bond money, new preferred stock money, the cost of new common stock, (include yields, statistical regression work, zero-origin regression, betas, and dividend growth models). Also complete the cost of retained earnings once you get the Kcs, use the Kreas same percentage.

b. second, build a first version combined set of books with the target's acquisition cost (plus whatever other money you need to raise - paint airplanes remodel ticket counters and departure gates, and more (this estimate is $10 mil). D