What is the firm's cost of capital after all of the retained earnhigs have been exhausted? A. 12.10% B. 14.95% C. 12.95% D. 12.43% At what level of total new financing will the firm exhaust its retained earnings? A. $1,500,000 B. $900,000 C. $2,500,000 D. $600,000 Source of Capital Long-term debt Target Mkt Proportions 25% Preferred stock 15% Common stock equity 60% DEBT: The firm has 9.5 percent coupon, $1,000 par value bonds outstanding that are currently selling for $1,067. They will mature in 10 years PREFERRED STOCK: The firm has determined that it can issue preferted stock at $100 per share. The stock will pay a $12.00 annual dividend. The cost of issuing and selling the preferred stock is $3 per share. COMMON STOCK: A firm's common stock is currently selling for $55 per share. The last dividend paid was $5.50. Dividends have been growing at a constant rate of 4.5 percent. Flotation costs for common stock are $2.75 per share. Additionally, the firm has a marginal tax rate of 40 percent. The firm aiso expects to have $1,500,000 of retained earnings available to reinvest in the coming vear