6. As a member of the Finance Department of Ranch Manufacturing Co., your supervisor has asked you to compute the appropriate discount rate to use when evaluating the purchase of new packaging equipment for the plant. Under the assumption that the firm's present capital structure reflects the appropriate mix of capital sources for the firm, you have determined the market value of the firm's capital structure as follows: To finance the purchase, Ranch Manufacturing Co. will sell 10-year bond with a 7% yield to maturity. Preferred stock paying a $2 dividend can be sold for $25. Common stock for Ranch Manufacturing is currently selling for $55 per share \& the firm paid a $3 dividend last year. Dividends are expected to continue growing at a rate of 5% per year into the indefinite future. If the firm's tax ratio is 30%, what discount rate should you use to evaluate the equipment purchase