Start with the partial model in the file Ch$11$ P$18$ Build a Model.xlsx$.$ The stock of Gao Computing sells for $$60,$ and last year's dividend was $$2\mathrm{.}83.$ Security analysts are projecting that the sommon dividend will grow at a rate of $8\%$ a year. A flotation cost of $13\%$ would be required to issue new common stock. Gao's preferred stock sells for $$43\mathrm{.}96,$ pays a dividend of $$5\mathrm{.}20$ per share, and new preferred stock could be sold with a flotation cost of $9\%.$ The firm has outstanding bonds with $25$ years to maturity, a $9\%$ annual coupon rate, semiannual payments, and $$1,000$ far value. The bonds are trading at $$908\mathrm{.}72.$ The tax rate is $25\%.$ The market risk premium is $6\%,$ the risk$-$free rate is $6\mathrm{.}5\%,$ and Gao's beta is $1\mathrm{.}1.$ In its cost$-$of$-$capital calculations, Gao uses a arget capital structure with $50\%$ debt, $10\%$ preferred stock, and $40\%$ common equity.

The data has been collected in the Microsoft Excel file below. Download the spreadsheet and perform the required analysis to answer the questions below. Do not round intermediate calculations. Round your answers to two decimal places.