6. 6: The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects, The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have to issue new common stock, then the cost of retained eamings is used in the firm's WACC calculation. However, if the firm will have to issue new common stock, the coit of new cammon stock should be used in the firm's wacc calculation. Quantitative Problem: Barton Industries expects that its target capital structure for raling funds in the future for its copital budget will consist of 40% debt, 5% preferred stock, commen equity? Do not round intermedate calculations. Pound your answer to two decimal ploces. \% What is the firn's weighted average cost of capital (WhCC) if it hes to issue new common stock? Do not round intermediate caiculations, Round your answer to two decinal places. w 6. 6: The Cost of Capital: Weighted Average Cost of Capital The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects, The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have to issue new common stock, then the cost of retained eamings is used in the firm's WACC calculation. However, if the firm will have to issue new common stock, the coit of new cammon stock should be used in the firm's wacc calculation. Quantitative Problem: Barton Industries expects that its target capital structure for raling funds in the future for its copital budget will consist of 40% debt, 5% preferred stock, commen equity? Do not round intermedate calculations. Pound your answer to two decimal ploces. \% What is the firn's weighted average cost of capital (WhCC) if it hes to issue new common stock? Do not round intermediate caiculations, Round your answer to two decinal places. w