6 7 Problem 15-45 Tax Rate Amount Weight Cost After-tax Cost Weighted Average 11 12 Funding Source Equity (Stock Sales, Retained Earnings) Debt (Bank Loans) Debt (Bond Issues) Total $4 #DIV/0! 0.080 07053 PANOO #DIV/0! 1.00 MARR Problem 15.5b 15-4b A firm's stockholders expect a 10% rate of return, and there is $15M in common stock and retained earnings. The firm has $4M in loans at an average rate of 8%. The firm has raised $9M by selling bonds at an average rate of 5%. What is the firm's cost of capital: (b)After taxes with a tax rate of 21%