Question: need help with 24 and 25 Question 24 (4 points) Marginal Incorporated (MI) has determined that its before-tax cost of debt is 10.0%. Its cost

Question 24 (4 points) Marginal Incorporated (MI) has determined that its before-tax cost of debt is 10.0%. Its cost of preferred stock is 11.0%. Its cost of internal equity is 14.0%, and its cost of external equity is 18.0%. Currently, the firm's capital structure has $470 million of debt, $150 million of preferred stock, and $380 million of common equity. The firm's marginal tax rate is 25%. The firm is currently making projections for the next period. Its managers have determined that the firm should have $92 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $182 million? 11.26% 12.02% 10.50% 13.19% 11.67% Question 25 (4 points) Marginal Incorporated (MI) has determined that its after-tax cost of debt is 6.0% for the first $99 million in bonds it issues, and 10.0% for any bonds issued above $99 million. Its cost of preferred stock is 13.0%. Its cost of internal equity is 17.0%, and its cost of external equity is 19.0%. Currently, the firm's capital structure has $325 million of debt, $35 million of preferred stock, and $140 million of common equity. The firm's marginal tax rate is 45%. The firm's managers have determined that the firm should have $71 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $203 million? 10.13% 12.73% 9.57% 12.17% 9.81% 9.25% 7.82%
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