Question 17 The following data pertains to Tany Company: Capital structure (considered optimal) Long term debt (LTD) 20% Preferred stock (PS) 10% Common stock (CS) 70% Tax rate 30% Expected constant growth rate for Earnings 5% Dividends 5% Last year dividend paid (Do) per share $3.00 Current selling price of one common share $60.00 The estimated treasury bonds yield 4% The estimated market risk premium (MRP) 3% The estimated company's beta 1.2 The same conditions apply to new security offering: Preferred stock: Share price $100.00 Dividend per share (Dps) $7.65 Flotation cost per share (F) $4.00 Long term debt (LTD): Interest rate (Id) 8% Assuming that the company will not issue additional common stock share, find the component cost of Common stock (assuming DCF)