Condensed 2021 Balance Sheet QU Q QU Time Elapse Attempt due 7 Minutes 2021 Current assets $2,000 Net Fixed assets 3,000 Total assets $5,000 Accounts payable and accurals $900 Short term debt 100 Long term debt 1.100 Preferred Stock (10,000 shares) 250 Common Stock (50,000 shares) 1,300 Retained earnings 1.350 Total common equity $2,650 Total liabilities and equity $5,000 Sunrise's earnings per share last year were $3.20. The common stock sells for $52.00, last year's dividend (D.)was $2.25, and a flotation cost of 10% would be required to sell new common stock. Security analysts are projecting that the common dividend will grow at an annual rate of 8.8%. Sunrise's preferred stock pays a dividend of $2.90 per share, and its preferred stock sells for $25.00 per share. The firm's before-tax cost of debt is 12%, and its marginal tax rate is 25%. The firm's currently outstanding 10% annual coupon rate, long-term debt sells at par value. The market risk premium is 5.2%, the risk-free rate is 5.5%, and Sunrise's beta is 1.526. The firm's total debt, which is the sum of the company's short-term debt and long-term debt, equals $1.2 million Use this data to answer the questions in the assignment. Calculate the cost of the following capital components (answers should be in % with two decimal points): the cost of equity from retained earnings using the DCF method