Fall River Corporation Fall River Corporation Balance Shect (Smillions) Assets Liabilities and Equity Current Assets Fixed Assets Total Assets $130 330 $460 Current Liabilities Long term debt Preferred Stock Common Equity Total Liabilities s 50 123 ( %) 41(%) 246 (%) and Equity $460 Fall River can borrow funds from its bank at a pretax cost of 9%. Additional debt can be ased by selling bonds. The 20-year, $1,000 par value bonds would have a 10.5% coupon rate nd semi-annual coupons. The bonds would sell for par value, but flotation costs would amount Fall River can sell $100 par value preferred stock with a 12% dividend rate. The stocks Fall River's common stock dividend at the end of the year is expected to be $4.80 per 4%, Fall River's marginal tax rate is 35%, would sell for par value and flotation costs would arnount to 3%. 4.80 dividend represents a growth rate of 8 percent over the previous year's th rate is expected to continue. Fall River common stock is selling now for 50 per share. Flotation costs of S3 per share could be expected for any new issues of common ock STEP1 What is the firm's capital structure or financing mix