The management of a conservative firm has adopted a policy of never letting debt exceed $30$ percent of total financing. The firm will earn $$16,000,000$ but distribute $30$ percent in dividends, so the firm will have $$11,200,000$ to add to retained earnings. Currently the price of the stock is $$50$; the company pays a $$2$ per share dividend, which is expected to grow annually at $10$ percent. If the company sells new shares, the net to the company will be $$48.$ Given this information, what is the

a$.$ cost of retained earnings? Round your answer to one decimal place.

$\%$

b$.$ cost of new common stock? Round your answer to one decimal place.

$\%$

The rate of interest on the firm's long$-$term debt is $9$ percent and the firm is in the $32$ percent income tax bracket. If the firm issues more than $$2,100,000,$ the interest rate will rise to $10$ percent. Given this information, what is the

c$.$ cost of debt? Round your answer to one decimal place.

$\%$

d$.$ cost of debt in extess of $$2,100,000?$ Round your answer to one decimal place.

$\%$

The firm raises funds in increments of $$2,500,000$ consisting of $$500,000$ in debt and $$2,000,000$ in equity. This strategy maintains the capital structure of $20$ percent debt and $80$ percent equity. Develop the marginal cost of capital schedule through $$13,000,000.$ Round your answers for the break$-$points to the nearest dollar and for the marginal costs to one decimal place.

The marginal cost of capital schedule:$\%$cost of equity: qquad $\%$cost of capital: $\%$$ $\%$cost of debt: $$cost of equity: $\%$cost of capital: $\%$