The following historical stock returns are for Companles A and B and the Martont Now make the following assumptions for Company B 1. The risk-free rate is expected to be 4.0 percent and the return on the market is expected to be an average of historical returns. 2 Historical data is accurate for calculating firm betas, and CAPM is correct 3. The firm just issued 10-year bonds that pay an annual coupon of $90.00 ($45.00 every 6 months), matures for $1,000, and sold for $1.040.05835 4. The firm can issue preferred stock at a net price of $42.00. This preferred stock pays an annual dividend of $5.25 5. The firm's targeted capital structure is 30 percent debt, 15 percent preferred, and 55 percent equity (which can be raised through additions to retained eamings). 6. The firm's tax rate is 40.0 percent. Given this information, determine the best estimate of Company B's weighted average cost of 8.387% 9.987% 10.353% @ 11.637% 12.554%