IV. Cost of Capital: 11. DMA Corporation just paid a dividend of $3. This dividend is expected to grow at a constant rate of 4% per year. The price of its stock now is S20. New stock can be sold at this price subject to 11% flotation cost. The company's marginal tax rate is 40% calculate the cost of internal (retained earnings) and external (new common stock) equity for this company A. 15.6% and 17.53% respectively. B. 19% and 20.85% respectively. C. 18.42% and 19% respectively. D. 19.6% and 21.53% respectively. 12. Oxford Corporation has the following capital structure: Type of Capital %of Capital Structure Before-Tax Cos 5% 8% 10% Bond 35% 10% 55% Preferred Stock Common Stock (Internal Only) If Oxford Corporation has 40% marginal tax rate, calculate the corporation's weighted average cost of capital. A. 8.4%. B. 7.24%. . 7.56%. D. 8.9% 13, LAD Corporation has capital structure of 40% debt and 60% equity. The company wants to raise new capital. New debt will be issued at a before tax cost of 6%. The equity will be provided by internally generated funds. If the required rate of return on the firm's stock is 10%, the firm's marginal tax rate is 40% and the firm wants to keep the same capital structure. This Corporation's cost of capital is A. 10% B. 7.44% C. 8.4% D. 6.16%