I am working on a scenario study however I am having an issue running calculations and think I need help. I have included the scenario as well as the financials that is required to work with for it. I need help figuring out what the final calculations will be based on the scenario as well at the questions on the 3rd image I have provided.

Al Hansen, the newly appointed vice president of nance of Berkshire Instruments, was eager to talk to his investment banker about future financing for the rm. ILine ofAl's rst assignments was to determine the rm's cost of capital. In assessing the weights to use in computing the cost of capital, he examined the current balance sheet, presented in Figure 1 below. In their discussion, Al and his investment banker determined that the current mix in the capital structure was very close to optimal and that Berks hire Instruments should continue with it in the future. Df some concern was the appropriate cost to assign to each of the elements in the capital st ructure. Al Hansen requested that his administrative assistant provide data on what the cost to issue debt and preferred stock had been in the past. The information is provided in Figure 2 below. when Al got the data, he felt he was making real progress toward determining the cost of capital for the rm. However, his investment banker indicated that he was going about the process in an incorrect manner. The important issue is the current cost of funds, not the historical cost. The banker suggested that a comparable firm in the industry, in terms of size and bond rating [Baa], Rollins Instruments, had issued bonds a year and a half ago for 9.3 percent interest at a $1,000 par value, and the bonds were currently selling for $390. The bonds had 20 yea rs remaining to maturity. The banker also observed that Rollings Instruments had just issued preferred stock at $50 per share, and the preferred stock paid an annual dividend of $4.30. In terms of cost of common equity, the banker suggested that Al Hansen use the dividend valuation model as a first app roach to determining cost of equity. Based on that approach, Al observed that earnings were 53 a share and that 40 percent would be paid out in dividends [Di]. The current stock price was $25. Dividends in the last four years had grown from 32 cents to the current value. The banker indicated that the under-w riting cost [otation cost} on a preferred stock issue would be $2.60 per share and $2.00 per share on common stock. Al Hansen further observed that his firm was in a 35 percent marginal tax bracket. With all this information in hand, A] Hansen sat down to determine his finn's cost of capital. He was a little confused about computing the firm's cost of common equity. He knew there were two different formulas: One: One for the cost of retained earnings and one for the cost of new common stock. His investment banker suggested that he follow the normally accepted approach used in determining the marginal cost of capital. First, determine the cost of capital for as large a capital structure as current retained earnings will support; then, determine the cost of capital based on exclusively using new common stock. \f1. Determine the weighted average cost of capital based on using retained earnings in the capital structure. Note: The percentage composition in the capital structure for bonds, preferred stock. and common equity should be based on the current capital structure of longterm nancing as shown in Figure 1 above {it adds up to $13 million}. Common equity will represent ED percent of nancing throughout this case. Use Roliins lnstru ments data to calculate the cost of preferred stock and debt. Show your work on your assignment document. 2. Reonrnpute the weighted average cost of capital based on using new common stud: in the capital structure. Note: The weights remain the same, only common equity is now supplied by new common stock.' rather than by retained earnings. After how much new nancing will this increase in the cost of capital take place? Determine this by dividing retained earnings by the percent of common equity in the capital structure. Show your work on your assignment document