Calculate the cost of debt, cost of preferred stock and the cost of common equity - CAPM and DC

	Data to be used in the calculation of the cost of debt:
	Par value = $1,000, non-callable
	Market value = $978.22
	Coupon interest = 6%, annual payments
	Remaining maturity = 20 years
	New bonds can be privately placed without any flotation costs

Data to be used in the calculation of the cost of preferred stock:
Par value = $100
Annual dividend = 7% of par
Market value = $103.00
Flotation cost = 4%

Data to be used in the calculation of the cost of common equity:
CAPM data:
VECs beta = 1.2
The yield on T-bonds = 3%
Market risk premium = 7%
DCF data:
Stock price = $32.23
Last years dividend (D0) = $2.10
Expected dividend growth rate = 5%
Bond-yield-plus-risk-premium data:
Risk premium = 6%