ABC Inc. is evaluating its cost of capital under alternative financing arrangements. In consultation with investment bankers, ABC expects to be able to issue new debt at par with a coupon rate of 8% and to issue new preferred stock with a $2.50 per share dividend at $25 a share. The common stock of ABC is currently selling for $20.00a share. ABC expects to pay a dividend of $1.50 per share next year. Market analysts foresee a growth in dividends in Invest stock at a rate of 5% per year. ABC's marginal tax rate is 35%. 1) If ABC raises capital using 45% debt, 5% preferred stock, and 50% common stock, what is ABC's cost of capital? 2) If ABC raises capital using 30% debt, 5% preferred stock, and 65% common stock, what is ABC's cost of capital