Kalpavriksha limited is evaluating its cost of capital under alternative financing arrangements. It provides the following information.

$*$ In consultation with investment bankers, it expects to raise new debt at an interest rate of $8\%$

$*$ Kalpavriksha Limited's tax rate is $35\%.$

It is also planning issue new preference shares with a $2\mathrm{.}50$ per share dividend at $25$ a share.

The equity shares of Kalpavriksha limited are currently selling for $20\mathrm{.}00$ a share. It expects to pay a dividend of $1\mathrm{.}50$ per equity share next year. Market analysts foresee a growth in equity dividends at rate of $5\%$ per year.

Required :$-$

Cost of debt, Preference shares and Equity shares