Barton industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. note that the firm's marginal tax rate is 25%. assume that the firm's cost of debt, rd, is 10.6%, the firm's cost of preferred stock, rp, is 9.8% and the firm's cost of equity is 13.2% for old equity, rs, and 13.8% for new equity, re. what is the firm's weighted average cost of capital (wacc1) if it uses retained earnings as its source of common equity? do not round intermediate calculations. round your answer to two decimal places. % what is the firm’s weighted average cost of capital (wacc2) if it has to issue new common stock? do not round intermediate calculations. round your answer to two decimal places. %

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.