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Need help!! Will give a like Bay Beach Industries wants to maintain their capital structure of 40% debt and 60% equity. The firm's tax rate

Need help!! Will give a like image text in transcribed
Bay Beach Industries wants to maintain their capital structure of 40% debt and 60% equity. The firm's tax rate is 34%. The firm can issue the following securities to finance the investments: Bonds: Mortgage bonds can be issued at a pre-tax cost of 10.1 percent. Debentures can be issued at a pre-tax cost of 7.5 percent. Common Equity: Some retained earnings will be available for investment. In addition, new common stock can belssued at the market price of $50. Flotation costs will be $4 per share. The recent common stock dividend was $7.95. Dividends are expected to grow at 4% in the future. What is the cost of capital using mortgage bonds and internal equity? Set your calculator to 4 decimal places. PLEASE INPUT THE ANSWER IN PERCENT ROUNDING IT TO 2 DECIMALS. DO NOTINCLUDE \% SIGN, E.G., INSTEAD OF 9.9922% INPUT 9.99

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