The B.B. Lean Co. (BBLC) currently already has 2 million shares of stock outstanding. The stock is selling for $10 per share. The firm's debt which has a book value of $2 million is publicly traded and quoted at 95 percent of book value, and its current nominal interest cost at 6 percent. The risk- free rate is 2 percent, and the market risk premium is 4 percent. You've estimated that Lean has a beta of 70. The corporate tax rate is 21 percent. 14 What is BBLC's WACC? (show your step calculations for partial credit if you have the wrong answer (20 points) (5 points skipping penalty) Besides the current amount of equity (from the outstanding shares), BBLC decides to raise some new equity by issuing new shares. The firms is considering 2 plans: Plan A: BBLC sells 1 million shares of preferred stocks at $15/share, and promises to pay a dividend of $2 per share on these preferred stocks. The flotation cost to issue these preferred stocks is $3/share. What is the cost (%) of raising new equity from issuing these preferred stocks? (10 points) 15