Bad Boys, Inc. is evaluating its cost of capital and is considering raising capital through debt, preferred stock, and common stock. It provides information on the expected terms of new debt and preferred stock, current common stock price, expected dividend, and growth rate. It asks what Bad Boys' cost of capital would be if it raised 45% of its capital through debt, 5% through preferred stock, and 50% through common stock, and with a different capital structure of 30% debt, 5% preferred stock, and 65% common stock.