Tyler Industries has a target capital structure of 50% common equity, 10% preferred stock, and 40% debt. The cost of retained earnings is 12%, and the cost of a new stock issue is 14%. The firm anticipates having $24 million in retained earnings available over the coming year. Preferred stock can be sold at a cost of 9%. The firm has a $15 million line of credit with a major bank, which has an after- tax cost of 5%. Beyond this amount, debt would have to be raised through a bond issue, and would have an after-tax cost of 7%. Tyler Industries has a marginal tax rate of 21%. What is the firm's cost of capital using bank loans, preferred stock, and external equity? 9.9% 9.7% 9.0% 10.7% 8.9%