A company projects with 20% debt, 10% preferred stock and 70% common stock.

The company has a 15 year, 5% coupon bonds selling at 102(par is 100).

Companys preferred stock has 8% preferred dividend on a par value of 100 that is currently priced at 99.5. Preferred has a flotation cost of .07/

Companys common stock currently sells for $27.50 a share and has a dividend that is currently $1.89 a share and is expected to grow at a constant rate of 3.5% per year.

Assume that the flotation cost for new stock is .03. The firm has 25,000,000 in retained earnings. The companys tax rate is 30%.

Calculate and graph the firms MCC.