6. The following information is given: Cost of retained earnings = 14% Cost of new common stock = 16% YTM of bonds is 6%. The amount available in retained earnings =$120 million The firm's marginal tax rate is 40% The target capital structure calls for 40% debt and $60% common equity. . Draw and label this firm's MCC schedule 6. The following information is given: Cost of retained earnings = 14% Cost of new common stock = 16% YTM of bonds is 6%. The amount available in retained earnings =$120 million The firm's marginal tax rate is 40% The target capital structure calls for 40% debt and $60% common equity. . Draw and label this firm's MCC schedule