QUESTION 5 10 points Save Answer Calculating Capital Structure Weights A firm has the following target capital structure with $19,991 of debt, $3,115 of preferred stock and $13,423 of equity. The after- tax cost of debt is 6.44%, the cost of preferred stock is 9.48% and the cost of common equity is 13.1%. The firm faces a tax rate of 40%. What will be the firm's weight on equity capital? (your answer should be in percentages so 10% would be entered as 10 or 10%) hint: you need to first find the total amound of invested capital QUESTION 6 10 points Save Answer Cost of Equity Capital A firm is issuing is raising capital for a new project. Their Oustanding bonds pay 14% interest annually. Investors currently pay $1124 for the 10-year bond. This firm plans to issue common stock. The additional risk permium on the firm's stock is 2.3%. Estimate the cost of equity capital? . Take a minute and rewrite this information in your own words? What information is provided and what are you trying to find? . Which intermediate steps are needed (do you need the yield to maturity on the bonds?) Which of the three cost of equity methods should be used based on the information provided Solve for the cost of equity O 4.21% None of the other choices 0 6.51% O 4.99% 2.69%