3. Practice Problem 11-3 Killer Burgers' capital structure consists of 30 percent debt, 20 percent preferred stock, and 50 percent common stock. If Kilisir raises new capital, its aftertax cost of debt will be 4.5 percent, its cost of preferred stock will be 8 percent, its cost of retained earnings will be 12.3 percent, and its cost of new common equity will be 13.3 percent. Killer must raise $270,000. If management expects the firm to generate $125,000 in retained earnings this vear, What is Killer's marginal cost of capital to raise the needed funds? Round your answer to two decimal places. Over-the-Top Canoples (OTC) is evaluating two independent investments. Project S costs $150,000 and has an IRR equal to 13 percent, and Project L costs $140,000 and has an IRR equal to 11 percent, OrC's capital structure consists of 20 percent debt and so percent common equity, and its component corts of capital are rdrr=4%,rss=8%, and rn=10.5%. If OTC expects to generate $220,000 in retained earnings this year, which project (s) should be purchased? Round your answers to one decimal place. Thus, should be purchased. Mesa Media is evaluating a project to help increase sales. The project costs $450,000 and has an IRR equal to 15 percent. The project is divisible, which percent before taxes. Mesa expects to retain $304,000 of its earnings this year to support the purchase of the project. Mesa's cost of retained earnings is 14 percent, and its cost of new common equity is 18 percent. Its target capital structure consists of 20 percent debt and 80 percent common equity. If Mesa's marginal tax rate is 40 percent, how much of the project should be purchased? Round your answer to the nearest doliar