Use the cost of capital schedules to select which firm is presented in the MCC schedule. \ Allen Corporation\ Cost of Capital Schedule\ Breakdown of funds: if $50M is raised if $100M is raised if $160M is raised\ Capital source Weight Amount After-TaxComponent Cost, r Amount After-TaxComponent Cost, r Amount After-TaxComponent Cost, r\ Debt 0.45 $22.5 6.0% $45.0 6.5% $72.0 6.5%\ Preferred stock 0.05 $2.5 11.0% $5.0 11.0% $8.0 11.0%\ Common equity 0.50 $25.0 11.5% $50.0 12.0% $80.0 13.0%\ Total capital $50.0 $100.0 $160.0 \ Morales Corporation\ Cost of Capital Schedule\ Breakdown of funds: if $50M is raised if $100M is raised if $160M is raised\ Capital source Weight Amount After-TaxComponent Cost, r Amount After-TaxComponent Cost, r Amount After-TaxComponent Cost, r\ Debt 0.45 $22.5 6.0% $45.0 6.3% $72.0 6.5%\ Preferred stock 0.05 $2.5 11.0% $5.0 11.0% $8.0 11.0%\ Common equity 0.50 $25.0 15.5% $50.0 16.03% $80.0 16.25%\ Total capital $50.0 $100.0 $160.0 \ White Corporation\ Cost of Capital Schedule\ Breakdown of funds: if $50M is raised if $100M is raised if $160M is raised\ Capital source Weight Amount After-TaxComponent Cost, r Amount After-TaxComponent Cost, r Amount After-TaxComponent Cost, r\ Debt 0.45 $22.5 6.0% $45.0 7.0% $72.0 7.0%\ Preferred stock 0.05 $2.5 10.0% $5.0 10.0% $8.0 10.0%\ Common equity 0.50 $25.0 15.6% $50.0 16.7% $80.0 18.7%\ Total capital $50.0 $100.0 $160.0\