18. Global Technology’s capital structure is as follows:

Debt ................................................ 35%

Preferred stock................................ 15 Common equity .............................. 50 The aftertax cost of debt is 6.5 percent; the cost of preferred stock is 10 percent;
and the cost of common equity (in the form of retained earnings) is 13.5 percent.
Calculate Global Technology’s weighted average cost of capital in a manner similar to Table 11-1 on page 332.