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The FLF Corporation is preparing to evaluate capital expenditure proposals for the coming year. Because the firm employs discounted cash flow methods, the cost of capital for the firm must be estimated. The following information for FLF Corporation is provided:  Without prejudice to your answers from any other questions, assume that the after-tax cost of debt financing is 10%, the cost of retained earnings is 14%, and the cost of new common stock is 16%. What is the marginal cost of capital to FLF Corporation for any projected capital expansion in excess of $7 million?A. 10% B. 12.74% C. 13.6% D. 16% |