Marginal Incorporated (MI) has determined that its before-tax cost of debt is 5.0% for the first $25 million in bonds it issues, and 9.0% for any bonds issued above $25 million. Its cost of preferred stock is 13.0%. Its cost of internal equity is 16.0%, and its cost of external equity is 18.0%. Currently, the firm's capital structure has $410 million of debt, $80 million of preferred stock, and $510 million of common equity. The firm's marginal tax rate is 45%. The firm's managers have determined that the firm should have $53 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 $43 million? \begin{tabular}{|l|} \hline 12.25% \\ \hline 10.33% \\ \hline 11.23% \\ \hline 11.35% \\ \hline 13.91% \\ \hline 12.89% \\ \hline 11.25% \\ \hline 12.27% \end{tabular} 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%