The BMW Company want to raise its capital that is why currently this company has issued corporate bond. The corporate bond issue outstanding of the company is fixed interest rate $6\%$ that pays interest rate monthly and it will mature in $3$ years. The bond is a $$1550$ face value and it is currently price at $$1600.$ Additionally information, some financial services have a commission fees meaning that the company will have to pay a commission $1\mathrm{.}75\%$ of the selling price for a new bond issues. Besides this, the company will also issue preferred stock. Per share will be paid a dividend $$10$ by the company and per share market price is at $$60.$ The flotation cost on preferred will amount to $$8$ per share. Apart from, the companys common stock is trading at $$50$ and its dividends are expected to grow at a constant rate of $6\%.$ The company paid a dividend previous year of $$8.$ The company decide to issue common stock but the company will have to pay a flotation cost per share equal to $6\%$ of selling price. Addition to this, the company decided to use all of their expected retained earnings in the coming year. Therefore, the companys beta is estimated $0\mathrm{.}85$ by the SML$.$ US treasury yield $2\mathrm{.}88\%$ and Germany treasury yield $1\mathrm{.}88\%.$ NYSE index monthly date. January $1213,12$ point, February $1314,13$ point, March $1412,14$ point, April $1215,12$ point, May $1513,15$ point, June $1316,13$ point, July $1612,15$ point, August $1211,12$ point, September $1113,11$ point, October $1314,13$ point, November $1416,14$ point, December $1615,16$ point. Additionally, DAX index monthly date. January $15872,46$ point, February $15842,13$ point, March $16152,86$ point, April $16223,99$ point, May $16275,38$ point, June $16163,36$ point, July $15951,3$ point, August $15897,93$ point, September $15917,24$ point, October $15913,82$ point, November $15834,91$ point, December $15896,23$ point. The company tax shield rate $15\%.$ The company has