The stock of Gao Computing sells for $50, and last years dividend was $2.10. A flotation cost of 10% would be required to issue new common stock. Gaos preferred stock pays a dividend of $3.30 per share, and new preferred stock could be sold at a price to net the company $30 per share. Security analysts are projecting that the common dividend will grow at a rate of 7% a year. The firm can issue additional long-term debt at an interest rate (or a before-tax cost) of 10%, and its marginal tax rate is 35%. The market risk premium is 6%, the risk-free rate is 6.5%, and Gaos beta is 0.83. In its cost-of-capital calculations, Gao uses a target capital structure with 45% debt, 5% preferred stock, and 50% common equity.

1) Current Common Price = ?

2) Common Stock Dividend Last Year (D0) = ?

3) Common Stock Dividend Growth Rate = ?

4) Flotation cost to issue new common stock = ?

5) Net issuing price of preferred stock = ?

6) Preferred stock dividend = ?

7) Before-tax cost of debt = ?

8) Tax rate = ?

9) Gao's beta = ?

10) Risk-free rate = ?

11) Market risk premium = ?

12) Target capital structure from debt = ?

13) Target capital structure from preferred stock = ?

14) Target capital structure from common stock = ?