Question A firm has a lender lined up to provide funding. Bank A charges an interest rate of $8\%$ with a $$450,000$ limit$.$ Bonds could also be issued at a $10\%$ yield. The firm has $435,000$ of available retained earnings at a cost of $11\mathrm{.}6\%.$ Preferred stock can be issued at $11\%$ and new common shares can be issued at $12\%.$ If the tax rate is $41\%,$ determine the second WACC in the MCC schedule. $($capital structure: $40\%$ debt, $10\%$ preferred and $50\%$ common equity$)$