Landon, the CFO of Marshall Technology Incorporated is planning next year's capital budget. It is at its optimal capital

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Landon, the CFO of Marshall Technology Incorporated is planningnext year's capital budget. It is at its optimal capital structure,which is 15 percent debt and 85 percent common equity, and thecompany's earnings and dividends are growing at a constant rate of12 percent. The last dividend, Do, was $1.00, and the company’sstock currently sells at a price of $22 per share. The firm canraise debt at a 9 percent before-tax cost, and is projecting netincome to be $2,400,000 with a dividend payout ratio of 25 percent.If the firm issues new common stock, a 7 percent flotation costwill be incurred. The firm's marginal tax rate is 40 percent.Calculate WACC2 in the MCC schedule.Answer Options:15.66 percent15.34 percent15.02 percent14.87 percent14.36 percent