D) all of above. Please refer to the following information for the next four questions Meacham Corp. wants to issue bonds with an 8% coupon rate, a face value of SI,000, and 10 years to maturity. The coupon is paid semi-annually. Meacham estimates that the bonds will sell for S1,050 and that flotation costs will equal $10 per bond. Meacham Corp. common stock currently sells for $25 per share. Meacham can sell additional shares by incurring flotation costs of $2.5 per share. Meacham paid a dividend of $5.00 per share recently and expects the dividend to grow at a constant rte of 4% per year. Meacham also expects tobaveS10 million of retained earnines available for use in capital budgeting projects during the coming yer capital structure is 60% debt ind 40% eemmen equity. N-han's marginal tax rate is 359% 17) What is the after-tax eost of debe assuming Meacham's bods are its only debc A) 3.71% )7-43 ) 4.8396 D) 4.74% 18) What is the cost of retained earnings? A) 27.11% B) 23.11% C) 24.80% D) 26.22% 19) What is the cost of new common stock? A) 27.11% B) 24.80% C) 26.22% D) 23.11% 20) What is the weighted average cost of capital assuming Meacham's total capital budget is $40 million? A) 14.72% B) 15.97% C) 18.91% D) 13.17% 21) You are in the copy business and your major competitor recently purchased a color laser copier. You currently do not offer color copies, so you are considering a similar purchase. You estimate the following incremental cash flows if a purchase is made: Cost of copier: $15,000 10,000 copies per year with a net after-tax inflow of $O.7 per copy; Three-year life of copier with no salvage value (You will not get any money by selling the copier at the end of its useful life); and The project's required return is equal to 11 percent. Based on an analysis of these cash flows, which of the following statements is true? A) The discounted payback period for this project is 2.1 years. B) The copier should be purchased since the net present value is $2106.00. C) The copier should be purchased since the internal rate of return is 12%. D) Answers B) and C) are both correct