ocuments to earn a free unlock. Helpful Unhelpful of 2 125% Page: Question 2 The Mackie MFG Company is trying to determine its weighted average cost of capital for use in making several investment decisions. The firm's bonds were issued 6 years ago and have 14 years left until maturity. They carry a coupon rate of 12% but its investment dealer has informed the company thas the yield to maturity for bonds of equal risk is currently 11%. Flotation costs for new debt will be 4 % of the amount issued. The firm's preferred stock is selling at $60 per share and has been yielding 4% in the current market. Mackie's investment dealer has stated that issue costs for new preferred will be 5% The firm will need to sell new common stock to finance the project it is now considering. Mackie common stock paid a dividend last year of $2.00 per share. Common share dividends are expected to maintain a growth rate of 6% for the foreseeable future. The stock is currently priced at $20 per share, and new common stock will have flotation costs of 5% Required Calculate the company's weighted average cost of capital assuming the optional capital structure is 40% debt, 10% preferred stock and 50% equity. Their tax rate is 40% E 0) ENG Sa PRE Resamping A - Pause Break/textes Salgsyst DAI Insert 8 2 9 0 1/4 3 0