I know the answers but need to know how to get them for questions 39 and 40. Please no excel as I am not allowed to use it for the course I am in.

A firm has determined its optimal capital structure which is composed of the following sources and target market value: proportions. Debt: The firm can sell a 12-year, $1,000 par value, 7 percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm has determined it can issue preferred stock at $75 per share par value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currently selling for $18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate for the last four years. Four years ago. the dividend was $1.50 (hint: 5 years of growth). It is expected that to sell, a new common stock issue must be underpriced $1 per share in floatation costs. Additionally, the firm's marginal tax rate is 40 percent. 39) The firm's cost of retained earnings is (See Table 9.1) (A) 12.7 percent B) 13.6 percent C) 10.2 percent D) 13.9 percent 39) A 40) The weighted average cost of capital up to the point when retained earnings are exhausted is 40) D (See Table 9.1) A) 7.5 percent B) 10.4 percent C) 8.65 percent (D) 11.2 percent