Based on No. 11, the cost of retained earnings at IAA is What is the weighted cost of capital for the IAA corporation? It consists of 40% debt, and 60% common. The cost of debt before tax = 9% and the cost of common = 11% The appropriate corporate income tax rate is 33.33%. The D. Dorner farms corporation is considering purchasing one of two fertilizer herbicides for the upcoming year. The more expensive of the two is better and will produce a higher yield. Assume these projects are mutually exclusive and that the required rate of return is 9 percent. Given the following cash flows