Green Caterpiliar Garden Supplies has a target capital structure of 45% debt, 4% preferred stock, and 51% common equity. It has a before-tax cost of debt of 8.2%, and its cost of preferred stock is 9.3%. If Green Caterpillar can raise all of its equity capital from retained earnings, its cost of common equity will be 12.4%. However, if it is necessary to raise new common equity, it will carry a cost of 14.2%. If its current tax rate is 40%, how much higher will Green Caterpllar's weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stock instead of raising the funds through retained earnings? (Note: Round your answer to two decimal places.) 1.01% 0.92% 1,20%6 1.24% The case of Purple Lemon Fruit Company The CFO of Purple Lemon Fruit Company is trying to determine the company's WACC. He has determined that the company's before-tax cost of debt is 9.60%. The company currently has 5750,000 of debt, and the CFO believes that the book value of the company's debt is a good approximation for the market value of the company's debt. - The firm's cost of preferred stock is 10.70%, and the book value of preferred stock is 545,000 . - Its cost of equity is 13,50%, and the company currently has $500,000 of common equity on its balance sheet. - The CFO has estimated that the firm's market value of preferred stock is 578,000 , and the market value of its common equity is 5880,000. If Purple Lemon is subject to a tax rate of 40%, Purple Lemon Fruit Company's WACC is ploces.) (Hint: Round your answer to two decimal