A firm has determined its optimal capital structure, which is composed of the following sources and target market value proportions: DEBT: The firm has 9.5 percent coupon, $1,000 par value bonds outstanding that are currently selling for $1,067. They will mature in 10 years. PREFERRED STOCK: The firm has determined that it can issue preferred stock at $100 per share. The stock will pay a $12.00 annual dividend. The cost of issuing and selling the preferred stock is $3 per share. COMMON STOCK: A firm's common stock is currently selling for $55 per share. The last dividend paid was $5.50. Dividends have been growing at a constant rate of 4.5 percent. Flotation costs for common stock are $2.75 per share. Additionally, the firm has a marginal tax rate of 40 percent. The firm also expects to have $1,500,000 of retained earnings available to reinvest in the coming year. Refer to the following information: What is the firm's before-tax cost of debt? A. 8.48% B. 0.27% C. 9.92% D. 9.50% What is the firm's after-tax cost of debt? A. 5.95% B. 3.39% C. 3.97% D. 5.09% What is the firm's cost of preferred stock? A. 12.00% B. 12.37% C. 3.00% D. 9.00% What is the firm's cost of retained earnings? A. 14.50% B. 15.03% C. 14.95% D. 155n% What is the firm's cost of a new issue of common stock? A. 15.03% B. 14.50% C. 14.95% D. 15.50% What is the firm's weighted average cost of capital up to the point when retained earnings are exhausted? A. 14.95% B. 12.43% C. 12.10% D. 12.95% What is the firm's cost of capital after all of the retained earnings have been exhausted? A. 12.43% B. 12.95% C. 14.95% D. 12.10% At what level of total new financing will the firm exhaust its retained earnings? A. $600,000 B. $1,500,000 C. $900,000 n \&o gnn ann