Marginal Incorporated (MI) has determined that its after-tax cost of debt is 5.0% for the first $62 million in bonds it issues, and 7.0% for any bonds issued above $62 million. Its cost of preferred stock is 12.0%. Its cost of internal equity is 15.0%, and its cost of external equity is 19.0%. Currently, the firm's capital structure has $325 million of debt, $70 million of preferred stock, and $105 million of common equity. The firm's marginal tax rate is 45%. The firm's managers have determined that the firm should have $50 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 $333 million? \begin{tabular}{|l|} \hline 8.92% \\ \hline 9.38% \\ \hline 8.08% \\ \hline 10.22% \\ \hline 8.17% \\ \hline 7.33% \\ \hline 6.62% \\ \hline 7.46% \\ \hline \end{tabular} Marginal Incorporated (MI) has determined that its before-tax cost of debt is 5.0% for the first $58 million in bonds it issues, and 8.0% for any bonds issued above $58 million. Its cost of preferred stock is 15.0%. Its cost of internal equity is 17.0%, and its cost of external equity is 21.0%. Currently, the firm's capital structure has $530 million of debt, $150 million of preferred stock, and $320 million of common equity. The firm's marginal tax rate is 25%. The firm's managers have determined that the firm should have $58 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 $76 million? \begin{tabular}{|l|} \hline 10.34% \\ \hline 12.15% \\ \hline 10.87% \\ \hline 10.96% \\ \hline 13.21% \\ \hline 11.93% \\ \hline 9.68% \\ \hline 11.62% \\ \hline \end{tabular}