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Aphid Corp. will finance its next major expansion with 60% debt, 10% preferred stock, and 30% retained earnings. Aphids after-tax cost of debt is 4.0%,
Aphid Corp. will finance its next major expansion with 60% debt, 10% preferred stock, and 30% retained earnings. Aphids after-tax cost of debt is 4.0%, cost of preferred stock is 7.7%, and cost of retained earnings is 13.8%. What is the corporations weighted average cost of capital? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%)
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