. (8 points) GHJ Inc. is investing in a major capital budgeting project that will require the expenditure of S16 million. The money will be raised by issuing $2 million of bonds, $4 million before-tax 16% and its cost of preferred stock will be 9%. The company's marginal tax rate is 34%. What is the weighted average cost of capital for this project? of preferred stock, and $10 million of new common stock. The company estimates its cost of debt to be 7%. The company can issue new equity at a before-tax cost of