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 Quantitative Problem: Barton Industries expects that its target capital structure for raising funds in the for 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, 10.3%, the firm's cost of preferred stock, rp, is 9.5% and the firm's cost of equity is 12.9% for old equity, rs, and 13.5% for new equity, re. What is the firm's your answer to two decimal places. % What is the firm's weighted average cost of capital (WACC 2 ) if it has to issue new common stock? Do not round intermediate calculations. Round your answer to two decimal places