I need urgent help!

1. Marginal Incorporated (MI) has determined that its before-tax cost of debt is 5.0% for the first $198 million in bonds it issues, and 8.0% for any bonds issued above $198 million. Its cost of preferred stock is 11.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 20.0%. Currently, the firm's capital structure has $310 million of debt, $30 million of preferred stock, and $160 million of common equity. The firm's marginal tax rate is 35%. The firm's managers have determined that the firm should have $73 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $274 million?

	9.08%
	10.28%
	7.80%
	9.00%
	12.02%
	10.16%
	8.88%
	10.74%

2. Marginal Incorporated (MI) has determined that its before-tax cost of debt is 7.0%. Its cost of preferred stock is 14.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 21.0%. Currently, the firm's capital structure has $621 million of debt, $45 million of preferred stock, and $234 million of common equity. The firm's marginal tax rate is 25%. The firm is currently making projections for the next period. Its managers have determined that the firm should have $99 million available from retained earnings for investment purposes next period. What is the firm's marginal cost of capital at a total investment level of $270 million?

	8.48%
	9.78%
	9.13%
	10.99%
	9.69%