Could you please answer questions 1,2 and 3 on the last page? I tried so hard using cost of capital notes i had but its just doesnt add up.

\fCase 10 Figure 1 40 formulas: one: one for the cost of retained earnings and one for the cost of new common stock. His investment banker suggested that he follow the normally accepted approach used in determining the marginal cost of capital. First, determine the cost of capital for as large a capital structure as current retained earnings will support: then, determine the cost of capital based on exclusively using new common stock. ~