Loans payable and current portion of long-term debt $1,379.20 Trade accounts payable 2,236.90 Income tax payable 9,453.80 Dividends payable 1,189.00 6% mandatory convertible preferred stock, $1 par 206.6 Total current liabilities $15,750.70 Long-term debt 16,074.90 Deferred income taxes and noncurrent liabilities 18,771.50 (in millions) Common stock, $0.50 par value 1,781.30 Other paid-in capital 39,682.60 Retained earnings 41,404.90 Accumulated other comprehensive loss -2,766.50 Stockholders' equity before deduction for treasury $80,102.30 Treasury stock 21,044.30 Total stockholders' equity $59,058.00 Source: Merck & Co. 10-K for fiscal year 2009. ther information: The market value per share of Merck common stock is $36.20 at the end of 2010. The beta of the common stock of Merck is 0.66. Merck debt is rated AA by Standard and Poor's and Aa3 by Moody's. The yield on Merck's long-term debt at the end of 2010 ranges from 4.099 to 5.243 percent. Merck's long- term debt trades for values ranging from 98.165 to 118.660. At the end of 2010, the rate on a 10-year Treasury bond is 3.48 percent. The expected market risk premium is in the range of 2.5 to 4 percent. The anticipated dividend for 2011 is $1.52 per share. The retention rate for Merck is typically 50 percent. The annual return on equity for 2010 and 2011 is anticipated to be 20 percent. A. Using fiscal year 2009 balance sheet information for your best guide to the company's target capital structure for future years, estimate Merck's weighted average cost of capital as of the end of 2010. Be sure to list your assumptions and support your choices