Bay beach industries wants to maintain their capital structure of 40% debt and 60%

Bay beach industries wants to maintain their capital structure of 40% debt and 60% equity. the firm's tax rate is 34%. the firm can issue the following securities to finance the investments: bonds: mortgage bonds can be issued at a pre-tax cost of 9 percent. debentures can be issued at a pre-tax cost of 10.5 percent. common equity: some retained earnings will be available for investment. in addition, new common stock can be issued at the market price of $46. flotation costs will be $3 per share. the recent common stock dividend was $3.60. dividends are expected to grow at 6% in the future. what is the cost of capital using mortgage bonds and internal equity?