The management of a conservative firm has adopted a policy of never letting debt exceed 40 percent of total financing. The firm will earn $12,000,000 but distribute 50 percent in dividends, so the firm will have $6,000,000 to add to retained earnings. Currently the price of the stock is $60; the company pays a $5 per share dividend, which is expected to grow annually at 9 percent. If the company sells new shares, the net to the company will be $55. Given this information, what is the a. cost of retained earnings? Round your answer to one decimal place. % b. cost of new common stock? Round your answer to one decimal place. % The rate of interest on the firm's long-term debt is 9 percent and the firm is in the 32 percent income tax bracket. If the firm Issues more than $2,900,000, the interest rate will rise to 10 percent. Given this information, what is the c. cost of debt? Round your answer to one decimal place. % d. cost of debt in excess of $2,900,000 ? Round your answer to one decimal place. % The firm raises funds in increments of $2,400,000 consisting of $960,000 in debt and $1,440,000 in equity. This strategy maintains the capital structure of 40 percent debt and 60 percent equity. Develop the marginal cost of capital schedule through $16,000,000. Round your answers for the break-points to the nearest dollar and for the marginal costs to one decimal place. The marginal cost of capital schedule