3.1 Blue Sky Corporation has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: LO 59 0.07) Debt: Capital can be raised through bank loans at a pretax cost of 5.9%. Also, bonds can be issued at a pretax cost of 5,4%. 0.4 06 0.34 0.085 Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $74. Flotation costs will be $3 per share. The recent common stock dividend was $7.73. Dividends are expected to grow at 6% in the future, What is the cost of capital if the firm uses bonds and issues new common stock? PLEASE INPUT THE ANSWER IN PERCENT ROUNDING IT TO 2 DECIMALS. DO NOT INCLUDE % SIGN, E.G. INSTEAD OF 9.990 INPUT 9.99 CON 12.08 ) MacBook Air