1. The target capital structure of the firm is: Bond 30% P/S 20% C/E 50% 100% Add the following items to your information set above: a) Projected retained earnings is $6 million b) All bonds can be raised at 10% YTM. Applicable tax rate is 40% c) An unlimited amount can be raised through preferred at 125 yield to investors (58) d) Common stock expected long-term growth is 6%, D. is 52. current stock price is $20.00 e) The floatation cost for new common stocks is 10% A Show the breaking points below Breaking Points Because of the increase in this component cost B. Show your component cost computation and fill in the banks below. C. Show below your WACC computation for each interval (use the market value weight you computed above) by filling in the blanks in the table: Weight 50 to $ Over $ Component Debt Preferred Stock Common Stock MCC D. MCC Schedule Coc (%) $ Capital