4. Randy Marsh Industrial Supply has an After-Tax cost of debt of 9.2 percent, a cost of equity of 14.3 percent, and a cost of preferred stock of 5.5 percent. The tax rate is 25%. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,000 shares of preferred stock outstanding at a market price of $41 a share. The bond issue has a Total Book Value of $550,000, but a current Market Value Per Bond of $1,012 (PV). What is the firm's weighted average cost of capital? A. 9.18 percent B. 10.24 percent C. 11.02 percent D. 12.73 percent E. 13.94 percent 5. In the absence of target weights, the capital structure weights used in computing the weighted average cost of capital: A are based on the book values of total debt and total equity. B. are computed using the book value of the long-term debt and the book value of equity C. remain constant over time unless the firm issues new securities D. are based on the market value of the firm's debt and equity securities. E are restricted to the firm's debt and common stock