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Lawn Depot Case Lawn, Inc. – Capital BudgetingLawn Depot’s market value capital structure is as follows:Cost of Capital components –L/T Debt = $310 → Wd=50%P/S = $145 → Wps=24%S/T Debt = $50 → Wsd=8%CE = $110 → Wre=18%Total = $615Cost of Debt = YTM(1-T) = .08(1-.40) = 4.8%Cost of Preferred Stock = D/P(1-F) = $9/$100(1-.10) = 10%Cost of Retained.