capital structure with $40\%$ debt, $15\%$ preferred stock, and $45\%$ common equity.

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to find the cost of equity.

After$-$tax cost of debt

Cost of preferred stock $($including flotation costs$)$

Cost of common equity, dividend growth approach

$($ignoring flotation costs$)$

Cost of common equity, CAPM

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b$.$ Calculate the cost of new stock using the dividend growth approach.

$\%$

c$.$ Assuming that Gao will not issue new equity and will continue to use the same target capital structure, what is the company's WACC?