Lighthouse engineering is a public traded company with 116,000 outstanding common shares in total, and each share currently is currently traded in the market with a price of $24. Lighthouse also has outstanding bond and preferred shares. The outstanding bond has a total face value of $900,000 and market value of 105% of face value. Its preferred shares has a market price of $38 and total shares outstanding is 51,000 . Lighthouse's cost of common equity, cost of preferred share and cost of debt are 12%,9% and 8% respectively. What is the cost of capital for Lighthouse? The company's tax rate is 35% A. 9.19% B. 12.60% C. 14.94% D. 9.84% E. 10.31% Lakeside Resort is a public traded company with a debt-equity ratio of 0.6. Its cost of debt after tax is 7% and cost of equity is 11%. What the cost of equity for Lakeside Resort would be if its target capital structure were 50% debt and 50% equity? A. 11.5% B. 12.0% C. 9.5% D. 11.0% E. 10.5%