Question 2 (7 points) Your firm's capital structure consists of 25% debt and 75% common equity. The firm's debt has twenty years until maturity and a $1,000 par value. The bonds are priced at $985 per bond and pay a 6% coupon rate. The bonds will pay interest semiannually. The firm is in the 25% tax bracket. The firm plans to issue new common stock. The new common stock will pay a $2 dividend per share, and the stock will be priced at $40 per share. Dividends are expected to grow by 11% indefinitely. JP Morgan will charge the firm 10% to prepare the stock issuance. What is the firm's weighted average cost of capital? 14.71% 13.57% 2.41% None of the Above