Seaport Corporation has a capital structure of 50% common equity, 30% debt, and 20% preferred stock. The firm wishes to keep these percentages unchanged. The firm recently paid a $5.25 cash dividend to common stockholders. Dividends are expected to grow at 10% per year for the foreseeable future. The current stock price is S76. New shares could be sold for the same price, but flotation costs woul d amount to $6 per share. The firm anticipates having $30 million in retained earnings available over the coming year. ailable with an interest rate of 9%. Beyond this A $24 million bank line ofcredit is av amount, the firm would have to issue 20-year, $1,000 par bonds with a coupon rate of and semiannual coupons. The bonds would sell for par value and flotation costs would amount to 3% of the selling price. Preferred stock would pay a 12% dividend on a $75 par value. The stocks would sell for par value less flotation costs of $3 per share. Seaport has a marginal tax rate of 34%. 7 19. What is the firm's cost of capital if the firm uses bonds, preferred stock and internal equity a) 15.04% b) 13.88% c) 13.55% d) 13.08% e) 13.41% 20. What is the firm's cost of capital using bank loans, preferred stock and external equity? a) 13.08% b) 13.55% c) 14.33% d) 13.88% e) 13.41%