The company is able to raise new funds at 4% after-tax cost of debt, 6% cost of preferred stocks, and 12% cost of new common stock. If the company needs to raise $100mil, and plans to sell $40mil in bonds, $10mil in preferred stock, and $50mil in common stock, what is the weighted average cost of capital? 22% 12% 8.20% None of the above If the firm has 100 in revenues this year, and expected 120 next year, and 70 in EBIT this year with expectation of 100 next year, and 50 in EPS this year with expectation of 85 next year, what is the degree of total leverage DTL? 2.14 1.63 3.5 4 O