The company estimates that it can issue debt at a rate of $r_d=9\%,$ and its tax rate is $40\%.$ It can issue preferred stock that pays.a constant dividend of $$5$

per year at $$59$ per share. Also, its common stock currently sells for $$30$ per share; the next expected dividend, $D_1,$ is $$3\mathrm{.}25$; and the dividend is expected

to grow at a constant rate of $6\%$ per year. The target capital structure consists of $75\%$ common stock, $15\%$ debt, and $10\%$ preferred stock. The data has

been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.

Open spreadsheet

a$.$ What is the cost of each of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations.

Cost of debt

$\%$

Cost of preferred stock

$\%$

Cost of retained earnings

$\%$