Given the following:

The firm$$s marginal tax rate is $40\%.$

The current price of Coleman$$s $12\%$ coupon, semiannual payment, noncallable $$1,000$ face value bonds with $15$ years remaining to maturity is $$1,153\mathrm{.}72.$ The firm does not use short$-$term interest$-$bearing debt on a permanent basis. New bonds would be privately placed with no flotation cost.

The current price of the firm$$s $9\%,$ $$100$ par value, quarterly dividend, perpetual preferred stock is $$105.$ Coleman would incur flotation costs equal to $4\mathrm{.}8\%$ of the proceeds on a new issue.

Coleman$$s common stock is currently selling at $$50$ per share. Its last dividend $($D$0)$ was $$4\mathrm{.}19,$ and dividends are expected to grow at a constant rate of $5\%$ in the foreseeable future. Coleman$$s beta is $1\mathrm{.}2,$ the yield on T$-$bonds is $7\%,$ and the market risk premium is estimated to be $6\%.$ For the own$-$bond$-$yield$-$plus$-$risk$-$premium approach, the firm uses a $4\%$ judgmental risk premium.

Coleman$$s target capital structure is $30\%$ long$-$term debt, $10\%$ preferred stock, and $60\%$ common equity.

There are $70,000$ bonds outstanding, $200,000$ preferred shares outstanding, and $3$ million common shares outstanding. What is a marginal cost of capital $($MCC$)$ schedule? Construct a graph that shows Coleman$$s MCC schedulSuppose you learned that Coleman could raise only $$210,000$ of new debt at a $10\%$ interest rate and that new debt beyond $210,000$ would have yield to investors of $12\%.$ Trace back through your work and explain how this new fact would change the MCC schedule.