To estimate the cost of capital of Supreme Electric Autos Inc. $($NYSE: SEA$),$ you collected the following information.

$$ SEA$$s tax rate is $25\%$

$$ SEA paid a dividend of $$2\mathrm{.}00$ per share last year $($D$0)$ and its stock currently sells at a price of $$26\mathrm{.}00$ per share. You expect SEA$$s earnings and dividends to grow at a constant rate of $4\%$ in the future.

$$ Ten$-$year Treasury bonds yield $3\%,$ the market risk premium is $6\%,$ and SEA$$s beta is $1\mathrm{.}5.$

$$ New debt could be sold at par with a coupon rate of $8\%.$ The new debt has a face value of $$1,000$ and will mature in $15$ years. Interest is paid semiannually. Flotation costs are negligible and can be ignored in the cost of debt estimation.

$$ New preferred stock could be sold to the public at a price of $$100$ per share, with a dividend of $$8\mathrm{.}16.$ The flotation cost for new preferred stock issuance is $$4\mathrm{.}00$ per share.

$$ New common equity can be raised either by retaining earnings or by issuing new common stock. The flotation cost for new common stock issuance is $8\%.$

$4.$ What is SEA$$s after$-$tax cost of debt?

$5.$ What is SEA's cost of preferred stock considering flotation costs?

$6.$ What is SEA's cost of internal equity using the capital asset pricing model $($CAPM$)$ approach?

$7.$ What is SEA's cost of internal equity using the discounted cash flow $($DCF$)$ approach ignoring flotation costs?

$8.$ What is SEA's cost of internal equity by the Bond$-$Yield$-$Plus$-$Risk$-$Premium method using the judgmental risk premium of $4\mathrm{.}0\%?$

$9.$ What is SEA's cost of external equity using the discounted cash flow $($DCF$)$ approach considering flotation costs?