As a consultant to GBH Skiwear, you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. You have determined the market value of the firms current capital structure (which the firm considers to be its target mix of financing sources) as follows: Source of Capital Market Value Bonds $550,000 Preferred stock $150,000 Common stock $450,000 To finance the purchase, GBH will sell 20-year bonds with a $1,000 par value paying 8.2% per year at the market price of $929. preferred stock paying a $2.46 dividend can be sold for $35.17. Common stock for GBH is currently selling for $50.31 per share. The firm paid a $4.03 dividend last year and expects dividends to continue growing at a rate of 3.5% per year into the indefinite future. The firms marginal tax rate is 34%. What discount rate should you use to evaluate the warehouse project?