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  3. 8. astro, ltd. has the following capital structure

8. Astro, Ltd. has the following capital structure. Weight Debt 325 Preferred Shares 189 Common...

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8. Astro, Ltd. has the following capital structure. Weight Debt 325 Preferred Shares 189 Common Equity SOS The after-tax cost of debt is 6.3%, the cost of preferred stock is 10%, and the cost of common equity (in the form of retained earnings) is 13%. 2. Find the weighted average cost of capital. (4 points) b. When the firm's debt reaches $14,500,000, the after-tax cost of debt increases to 8.2%. At what size of total investment will the firm experience the 8.2% increase in debt cost? (3 points) c. Find the marginal cost of capital after the firm has to pay the 8.2% cost of debt. (2 points)

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