eBook Killer Burgers' capital structure consists of 20 percent debt, 30 percent preferred stock, and 50 percent common stock. If Killer raises new capital, ts after-tax cost of debt will be 2.5 percent, Its cost of preferred stock will be 8 percent, its cost of retained earnings will be 12.3 percent, and its cost of new common equity will be 13.3 percent. Killer must raise $170,000. If management expects the firm to generate $75,000 in retained earnings this year, what is Killer's marginal cost of capital to raise the needed funds? Round your answer to two decimal places. % eBook Over-the-Top Canopies (OTC) is evaluating two independent investments. Project S costs $155,000 and has an IRR equal to 9 percent, and Project L costs $145,000 and has an IRR equal to 8 percent. OTC's capital structure consists of 20 percent debt and 80 percent common equity, and its componens costs of capital are far 4%, rs = 8%, and re = 11.5%. If OTC expects to generate $230,000 in retained earnings this year, which project(s) should be purchased? Round your answers to one decimal place. Acceptable? Project S L Thus, Select- WACC % should be purchased. -Select-v -Select