The Financial controller of "BESTH Co." is about to select among three available projects. He was provided the following information: Project Rate of return 12.10% Y 11.80% Z 12.95% BESTH Co. has a capital structure that consists of $15,000 debt, and $10,000 preferred stock, $40,000 internal common equity from retained earnings, and $35,000 external common equity through issuing new shares that would incur 10% flotation cost. The company estimates that it can issue debt at a before tax cost of 9%, and its tax rate is 40%. The company also can issue preferred stock at $60 per share, which pays a constant dividend of $6 per year. The company's common stock currently sells at $30 per share. The year-end dividend, D1, is expected to be $2.50, and the dividend is expected to grow at a constant rate of 6% per year. 1. BESTH Co. weight of debt is: $10,000 15.00% 57.14% O 42.86% 2. BESTH Co. weight of internal common equity from retained earnings: 35.00% 40.00% $35,000 $40,000 3. BESTH Co. weight of external common equity is: * 35.00% 40.00% $35,000 $40,000 4. BESTH Co.weight preferred equity is: * 35.00% 40.00% 10.00% $10,000 5. The after tax cost of debt r0(1-t) for BESTH Co. is: 09.00 5.40% 7.50% 6.00% 6. The cost of internal equity (rs) for BESTH Co. is: O 14.00% 13.500 12 501 14331 2 The cost of external equity for BESTH Co. is: 21.501 10.29% 15.26% 100.00% 8. The cost of preferred equity for BESTH Co.is 10.00% 34.78% 6522 9.00%