The Rawlings Company has a target capital structure of 50 percent common equit

The Rawlings Company has a target capital structure of 50 percent common equity 40 percent debt and 10 percent
preferred stock. The cost of retained earnings is 16 percent and the cost of new equity (external) is 16.7 percent. Princeton can sell debentures (bonds) that
will have an after-tax cost of 8.3 percent and the after-tax cost of preferred stock will be 11.9 percent. What is the marginal cost of capital (WACC) if only
retained earnings common equity is used? What is the marginal cost of capital (WACC) if newly issued common equity is used?