Question 17 1 pts Lexington Corporation wants to maintain its 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 7.3 percent. The firm can obtain bank loans at a pre-tax cost of 10 percent. Common Equity: Some retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $57. Flotation costs will be $3 per share. The recent common stock dividend was $3.14. Dividends are expected to grow at 5% in the future. What is the cost of capital using bank loans and external equity? SET YOUR CALCULATOR TO 4 DECIMAL PLACES. PLEASE INPUT THE ANSWER IN PERCENT ROUNDING IT TO 2 DECIMALS AT THE END. DO NOT INCLUDE % SIGN, E.G., INSTEAD OF 9.9922%, FOR EXAMPLE ENTER 9.99 The DHANGE par The EXOANGE Cez pdf A Revised Commun docx Bevised Commun. docx a e o HI Search