Global Technology’s capital structure
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| Global Technology’s capital structure is as follows: |
| Debt | 35 | % |
| Preferred stock | 15 | |
| Common equity | 50 | |
| The aftertax cost of debt is 7.00 percent; the cost of preferred stock is 11.00 percent; and the cost of common equity (in the form of retained earnings) is 14.00 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.) |
| Weighted Cost | ||
| Debt (Kd) | % | |
| Preferred stock (Kp) | ||
| Common equity (Ke) | ||
| Weighted average cost of capital (Ka) | % | |
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