CDE Inc.$\text{'}$s current $($and optimal$)$ capital structure is $40\%$ debt, $10\%$ preferred stock, and $50\%$ common equity. CDE is in the $40\%$ tax bracket. The company can issue up to $$20,000,000$ in new bonds at par with a $7\%$ coupon rate; any subsequent amount must carry a $2\%$ premium to compensate investors for added risk. A new issue of preferred stock would pay an annual dividend of $$4\mathrm{.}00$ and be priced to net the company $$50\mathrm{.}00$per share after the $$3\mathrm{.}00$ per share floatation cost. The firm has $$21,000,000$ in change in retained earnings for the current period. CDE's common stock trades at $$40\mathrm{.}00$ per share and the expected dividend on the common stock at t$1$ is $2\mathrm{.}00.$ Floatation costs on a new common stock issue is $$5\mathrm{.}00$ per share. The company is growing at $7\%$ per year. $(3$pts$)$

What is the cost of preferred stock?

What is the cost of internal common equity?

What is the cost of equity from new common stock?