The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGees current capital structure calls for 35 percent debt, 15 percent preferred stock, and 50 percent common equity. Initially, common equity will be in the form of retained earnings (Ke) and then new common stock (Kn). The costs of the various sources of financing are as follows: debt (after-tax), 4.6 percent; preferred stock, 10.0 percent; retained earnings, 9.0 percent; and new common stock, 10.4 percent.

e. What will the marginal cost of capital be immediately after that point? (Consider the facts in both parts c and d.) (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)