a. what is the after-tax component cost of debt and the component cost of preferred stock.

b. what is fhe component cost of common equity based on capm.

c.what is the component cost of common equity based on the DCF model.

d. what is the firms WACC assuming they use an average component cost of equity given the 2 methods used

Brandt-Leland Inc. has a target capital structure consisting of 30% debt, 5% preferred stock, and 65% common equity. Brandt-Leland has 20-year, 7.25% semiannual coupon bonds that are selling for $875. Brandt-Leland's preferred stock sells for $95 and pays a 9% dividend on a $100 par value. Brandt-Leland is a constant growth firm with a growth rate of 4% and just paid a dividend of $2.35 on its common stock that is currently selling for $30.00 per share. The beta is 1.25 and the risk-free rate is 5.25%. The required return on the stock market is 11.50%. The firm's tax rate is 25%