The Buccaneer Company was recently formed to manufacture a new product. It has tl capital structure: 9% Debentures of2002 ($1000 Par) 7% Preferred stock ($100 Par) Common stock (320,000 shs.) $6,000,000 2,000,000 12,000,000 $20,000,000 Total e company's published beta coefficient is 1.5. The return on the market portfoli k fee rate is .03. Assume a marginal tax rate of40%. A. Compute the weighted-average cost of capital. The Financial Analysts at the Buccaneer Company think they can low by issuing $4,000,000 in new 8%, 20 year, $1000 par, mortgage bond buying back $4,000,000 in common stock, thus making their new deb The new bonds would incur 10% in various flotation costs. Compu average cost of capital