14, The chief financial officer of Portland Oil has given you the assignment of determining the tim's marginal cost of capital. The present capital structure which is considered optimal, is: Book Value Market Value Debt $ 40 million $ 30 million Preferred Stock Op 10 million 10 million Common Equity 50 million editle (160 million Total investment in $100 million $200 million enke The anticipated financing opportunities are these: Debt can be issued with an 8 percent before-tax cost. Preferred stock will be $100 par, carry a dividend of 15 percent, and can be sold to net the firm $90 per share. Common equity has a beta of 1.60, the return on the market is 10 percent, and the risk-free rate is 3 percent. If the firm's tax rate is 40 percent, what is its marginal cost of capital? LOCS 14.2 percent 12.0 percent 10.7 percent 12.9 percent 13.4 percent tot ho let utal afacer Portland has give you bassin o the marginal stof opics. The present capital structure whigh is considera imalis