(Solved): The company estimates that it can issue debt at a rate of rd=11%, and its tax rate is 35%. It ca ...

The company estimates that it can issue debt at a rate of $$r_d=11\%$$, and its tax rate is $$35\%$$. It can issue preferred stock that pays a constant dlvidend $$\$5$$ per year at $$\$52$$ per share. Also, its common stock currently sells for $$\$35$$ per share; the next expected dividend, $${\mathrm{D}}_1$$, is $$\$4.50$$; and the dividend is expected to grow at a constant rate of $$4\%$$ per year. The target capital structure consists of $$75\%$$ common stock, $$15\%$$ debt, and $$10\%$$ preferred stock. T data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet a. What is the cost of each of the capital components? Round your answers to two decimal places. Do not round your intermediate calculations. Cost of debt