Can you answer part E

65%. 12:33 PM IFM13 Ch11 P18 - Saved File Home InsertDraw Formulas Data ReviewView 1 Student 2 Chapter: 3 Problem: 4 5 INPUTS USED IN THE MODEL 18 $50.00 $30.00 $3.30 $2.10 8 Net Ppt 10 Do 11 9 12 B-Td 13 Skye's beta 14 Market risk premium, RPM 15 Risk free rate, R 16 Target capital structure from debt 17 Target capital structure from preferred stock 18 Target capital structure from common stock 19 Tax rate 20 Flotation cost for common 21 10% 0.83 6.0% 6.5% 45% 35% 10% 22 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 23 24 25 Cost of debt A-T r 6.50% B-Trx (1-T) 28 10% 65% 30 Cost of preferred stock (including flotation costs 31 32 Net Pot - $30.00 11 .00'% $3.30 35 Cost of common equity, dividend growth approach (ignoring flotation costs 37 4.49% $2.25 $50.00 39 40 41 42 43 Cost of common equity, CAPM TRF 6.5% b xRPM 4.98% 11 .48% Build a Model