Suppose that TechnoTLC is considering a new project. They are trying to determine the required rate of return for their debt and equity holders. See the information below:

A $6\mathrm{.}5\%$ percent annual coupon bond with $15$ years to maturity, selling for $96\%$ of par. The bonds make annual payments. What is the before tax cost of debt? If the tax rate is $30\%,$ what is the after$-$tax cost of debt?

The firm's beta is $1\mathrm{.}5.$ The risk$-$free rate is $4\mathrm{.}0\%$ and the expected market return is $10\%.$ What is the cost of equity using CAPM?

Large companies may usually obtain new capital by either issuing stocks or bonds.

What are the $2-3$ most important favorable elements $($pros$)$ of stocks and $2-3$ most favorable aspects of bonds to the issuer?

What are the $2-3$ negative elements $($cons$)$ to consider when issuing stocks and $2-3$ cons of issuing bonds?