• 9.29%

• 9.35%

• 10.68%

• 9.48%

• NOT ENOUGH DATA TO ANSWER

Young Ind, issued bonds 3 years ago with a 9% coupon rate. These bonds actual yield to maturity is 10.5%. The company common stock price is $58 and last year dividends were $2.06. Dividends during last years were: 2020 $2.06 2019 $1.87 2018 $1.70 Preferred stocks price is $80 and dividends are $5 with flotation cost of 3%. Young corporate rate is 30%. If new common stocks are issued a 4% flotation costs will be charged. The firm optimal capital structure is: Debt 40%, Common Equity 35%, Preferred Stocks 25% Calculate the Marginal Cost of Capital DON'T MAKE INTERMEDIATE ROUNDINGS