Question

Global Technology’s capital structure is as follows:   Debt50%Preferred

stock35 Common equity15 

The aftertax cost of debt is 7.50 percent; the cost of preferred stock is 11.00 percent; and the cost of common equity (in the form of retained earnings) is 14.50 percent.

Calculate the Global Technology’s weighted cost of each source of capital and the weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

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