Bonds 4,500,000 Preferred stock 1,900,000 common stock 5,600,000 To finance the purchase, Ranch Manufacturing will sell 10-year bonds paying 6.8% per...

Bonds 4,500,000Preferred stock 1,900,000common stock 5,600,000To finance the purchase, Ranch Manufacturing will sell 10-year bonds paying 6.8% per year at the market price of $1,041. Preferred stock paying $1.98 dividend can be sold for $25.54. Common stock for a rate of 5.1% per year into the indefinite future. If the firms tax rate is 30%, what discount rate should you use to evaluate the equipment purchase?