Highland Industries has a target capital structure of 60% common equity, 10% preferred stock, and 30% debt. The cost of retained earnings is 15%, and the cost of a new stock issue is 17%. The firm anticipates having $24 million in retained earnings available over the coming year. Preferred stock can be sold at a cost of 11%. The firm has a $15 million line of credit with a major bank, which has an after tax cost of 6%. Beyond this amount, debt would have to be raised through a bond issue, and would have an after-tax cost of 9%. Highland Industries has a marginal tax rate of 35%. What is the firm's cost of capital using bank loans, preferred stock, and internal equity? 12.09 14.0% 13.1% 11.9% 12.896