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1.2 8% 14% firm-specific risk factor (B) return on debt (kd) return on market portfolio (rm) return on preferred stock (kp) risk-free rate of return

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1.2 8% 14% firm-specific risk factor (B) return on debt (kd) return on market portfolio (rm) return on preferred stock (kp) risk-free rate of return (rf) tax rate weight of common equity (we) weight of preferred stock (wp) 12% 4% 40% 40% 10% Calculate the weighted average cost of capital (round to 2 decimal points). Show your work

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