Question 14 1 pts Coventry Corporation purchased a machine for use in the firm's manufacturing process. The original cost of the machine was $3,000,000. The machine has a class life of 15 years, but after 13 years, the firm has decided to sell the machine for $320,000. If Coventry has a marginal tax rate of 34%, what is the tax effect associated with the decision? O $136,000 payment $40,800 refund $27.200 payment $27.200 refund $108.000 payment U Question 13 1 pts Highland Industries has a target capital structure of 60% common equity, 10% preferred stock, and 30% debt. The cost of retained earnings is 15%, and the cost of a new stock issue is 17%. The firm anticipates having $24 million in retained earnings available over the coming year. Preferred stock can be sold at a cost of 11%. The firm has a $15 million line of credit with a major bank, which has an after-tax cost of 6%. Beyond this amount, debt would have to be raised through a bond issue, and would have an after-tax cost of 9%. Highland Industries has a marginal tax rate of 35%. What will be the firm's cost of capital using bonds, preferred stock, and external equity? 13.1% 11.9% 14.0% 12.8% 12.096