Analyze the cost of capital situations of the following company cases, and answer the specific questions that finance professionals need to address. The case of Green Caterpillar Garden Supplies Green Caterpillar Garden Supplies has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Green Caterpillar can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will Green Caterpillar's weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your answer to two decimal places.) 0.64% 0.80% 0.74% 0.86%