Bellview Company uses three types of financing: debt, preferred stock, and common equity

(the sum of retained earnings and common stock), with aftertax costs of 6 percent, 12 percent, and 16 percent, respectively. Debt comprises 30 percent of the capital structure, the preferred stock 45 percent, and the common equity 25 percent.

Required:

What is Bellview’s weighted cost of capital with the preceding capital structure?