Please show calculations in Excel. Otherwise, do not attempt to answer

Consider a firm that is financed THREE ways: common equity, preferred equity, and long term debt. The firm is considering replacing all of the machinery in its Cleveland plant. They have more than enough cash on hand to pay for the project without raising external capital. Some relevant information about the firm is given below.

1. Based on all THREE sources of funding, what cost of capital should the firm use to evaluate the project?

Please show calculations in Excel. Otherwise, do not attempt to answer

\begin{tabular}{|l|l|} \hline Stock Price (common shares) & $15 \\ \hline Number of common shares outstanding & 5M \\ \hline Equity beta (for common stock) & 2.5 \\ \hline & \\ \hline Stock Price (preferred shares) & $8 \\ \hline Number of preferred shares outstanding & 10M \\ \hline Dividends per share on preferred stock & $1.00 \\ \hline & \\ \hline Market value of Total Debt outstanding & 50M \\ \hline Yield to maturity on the firm's long term debt & 6.5% \\ \hline Coupon rate on the firms long term debt & 2.0% \\ \hline & \\ \hline Corporate tax rate & 35% \\ \hline Risk-free rate & 4.5% \\ \hline Market Risk Premium & 5.5% \\ \hline \end{tabular}