Question: please help asap Marginal Incorporated (MI) has determined that its after-tax cost of debt is 10.0%. Its cost of preferred stock is 14.0%. Its cost
Marginal Incorporated (MI) has determined that its after-tax cost of debt is 10.0%. Its cost of preferred stock is 14.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 19.0%. Currently, the firm's capital structure has $325 million of debt, $50 million of preferred stock, and $125 million of common equity. The firm's marginal tax rate is 45%. The firm is currently making projections for the next period. Its managers have determined that the firm should have $62 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 $223 million? 9.73%12.65%12.28%11.90%8.98%
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