Marginal Incorporated (MI) has determined that its after-tax cost of debt is 8.0%. Its cost of preferred stock is 12.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 20.0%. Currently, the firm's capital structure has $500 million of debt, $120 million of preferred stock, and $380 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 $94 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 $317 million? 13.04% 11.52% 12.28% 12.04% 10.52%