Small Inc. has a capital structure consisting of $30\%$ common shares, $20\%$ preferred shares and $50\%$ debt and a corporate tax rate of $40\%.$ The company$$s common shares are currently selling for $$40$ per share. The common share dividends have grown from $$4$ to $$4\mathrm{.}85($just paid$)$ over the last $3$ years and this level of growth is expected to continue. Flotation costs are estimated at $6\%.$ Its $8\%$ preferred shares have a face value of $$60$ and are currently selling for $$65.$ Flotation costs for the preferred shares are estimated at $3\mathrm{.}5\%.$ The company$$s $6\%$ bonds currently yield $7\%$ with flotation costs being estimated at $2\%.$