Part not clear: The company is growing at a fast rate and management wishes to raise additional 30,000,000 to expand capacity.

kindly remove one Zero in Common shares

COST OF CAPITAL Chambishi Milling Company (C.M.C) has the following capital Debt, 9% coupon, K1,000 Preferred stock.8% dividend. 100par Common equity.Kl par Retained earnings 15.000.000 10.000.000 5.000.0000 15.000.000 45,000,000 The company is growing very fast and management wishes to raise additional K30 000.000 to expand capacity. The money can be raised by issuing bonds, preferred stoc or common equity. Suppose the risk free rate is at 8% and the expected market return is 14% and the stock beta of 0.7: You are also aware that the company has just paid. dividend of K 1.34 and that is expected to grow at a rate of 6.0". Let us assume thoi corporate tax is 40% Required: a) Calculate the cost of debt for Chambishi milling Company b) Calculate the company cost of preferred stock c) Calculate the cost of equity using both the dividend growth model and the Security market line d) What is the tim ascrage cos! of capital