The Delta Chemical Corporation is expected to have the capital structure for the foreseeable future, as shown in the table below.

The floatation costs are already included in each cost component. The marginal income tax rate sub $m$ for Delta is expected to remain at $40\%$ in the future.

A$.$ Determine the cost of capital $(k).$

B$.$ If the risk$-$free rate is known to be $6\%$ and the average return on the S&P $500$ is about $12\%,$ determine the cost of equity with $($beta$)=1\mathrm{.}2$ based on the capital$-$asset pricing principle.

C$.$ Determine the cost of capital on the basis of the cost of equity obtained in Part B$.$

$\backslash$table$[[\backslash$table$[[$Source of After$-$Tax$],[$Financing$]],\backslash$table$[[$Percent of Total$],[$Funds$]],$Before$-$Tax Cost,Cost$],[$Debt$,30\%,,],[$Short Term,$10\%,14\%,],[$Long Term,$20\%,12\%,],[$Equity$,70\%,,],[$Common Stock,$70\%,,30\%$