(Weighted average cost of capital) As a consultant to GBH Skiwear, you have been asked to compute the appropriate discount rate to use in the evaluation of the purchase of a new warehouse facility. You have determined the market value of the firms current capital structure (which the firm considers to be its target mix of financing sources) as follows: Source of Capital and Market Value: Bonds: $500,000 Preferred stock: $100,000 Common stock: $400,000 To finance the purchase, GBH will sell 20-year bonds with a $1,000 par value paying 8 percent per year (paid semiannually) at the market price of $950. Preferred stock paying a $2.50 dividend can be sold for $35. Common stock for GBH is currently selling for $50 per share. The firm paid a $4 dividend last year and expects dividends to continue growing at a rate of 4 percent per year into the indefinite future. The firms marginal tax rate is 34 percent. What discount rate should you use to evaluate the warehouse project?