Marginal Incorporated (MI) has determined that its after-tax cost of debt is 4.0% for the first $285 million in bonds it issues, and 8.0% for any bonds issued above $285 million. Its cost of preferred stock is 13.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 20.0%. Currently, the firm's capital structure has $540 million of debt, $ 90 million of preferred stock, and $270 million of common equity. The firm's marginal tax rate is 25%. The firm's managers have determined that the firm should have $89 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 $386 million? 12.10% 09.70% 8.50% 10.90% 10.90% 9.10% 7.90% 9.70% Marginal Incorporated (MI) has determined that its after-tax cost of debt is 4.0% for the first $285 million in bonds it issues, and 8.0% for any bonds issued above $285 million. Its cost of preferred stock is 13.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 20.0%. Currently, the firm's capital structure has $540 million of debt, $ 90 million of preferred stock, and $270 million of common equity. The firm's marginal tax rate is 25%. The firm's managers have determined that the firm should have $89 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 $386 million? 12.10% 09.70% 8.50% 10.90% 10.90% 9.10% 7.90% 9.70%