A firm has determined its optimal capital structure which is composed of the following source and target market value propositions. Debt: The firm can sell is 12-years, $1,000 per value, 7- percent bond for $960. A flotation cost of 2 percent of the face value would be required in addition to the discount of $40. Preferred Stock: The firm has determined it can issue preferred stock at $ 75 per share per value. The stock will pay a $10 annual dividend. The cost of issuing and selling the stock is $3 per share. Common Stock: A firm's common stock is currency selling for $ 18 per share. The dividend expected to be paid at the end of the coming year is $1.74. Its dividend payments have been growing at a constant rate of 3%. It is expected that new common stock issue must be underpriced $1 per share in floatation costs. Additionally the 40 percent The weighted average cost of capital after at retained earnings are exhausted is 13.15 percent 11.55 percent 11.0 percent 10.4 percent