Asking for cost of capital using mortgage bond and INTERNAL equity. Please help. ppl keep giving me the answer for external equity and this is my second time posting the question. Thank you in advance.

Bay Beach Industries wants to maintain their capital structure of 40% debt and 60% equity. The firm's tax rate is 34% The firm can issue the following securities to finance the investments: Bonds: Mortgage bonds can be issued at a pre-tax cost of 9 percent. Debentures can be issued at a pre-tax cost of 10.5 percent. Common Equity: Some retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $46. Flotation costs will be $3 per share. The recent common stock dividend was $3.60. Dividends are expected to grow at 6% in the future. What is the cost of capital using mortgage bonds and internal equity? O 11.30% 11.69% O 10.96% 11.35% O13.12%