P10-8. Dingel, Inc., is attempting to evaluate three alternative capital structures-A, B, and C. The following table shows the three structures along with relevant cost data. The firm is subject to a 40% tax rate. The risk-free rate is 5.3% and the market return is currently l0.7%. Capital Structure Item Debt million) 45 Preferred Stock million) Common Stock million) 65 35 Total Capital million) 70% 75% Debt (yield to maturity) 2.20 $2.80 Annual Preferred Stock Dividend $21.00 $3000 Preferred Stock (Market Price) Common Stock Beta