Attempts Keep the Highest / 2 ols 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 fem plans tous for our proportions of debt, preferred stock, and common equity, along with the cost of these components, end to cost of capital (WACC). If the firm will not have to issue new common too, then the cost of retained in the However, if the firm will have to issue new common stock, the cost of new common stock should be used in acco Quantitative Problem: Barton Industries expects that its target capital structure for raising funds the future for the capitalet debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25. Assume that out of firm's cost of preferred stock, p, is 9.9% and the firm's cost of equity is 13.3% for old equity and 19.7 for next weer weighted average cost of capital (WACC) if it uses retained earnings on its source of common quty? Do not round intermediate cat. your answer to two decimal places 96 ry What is the firm's weighted average cost of capital (WACC) if it has to lose new common stock? Do not round ta answer to two decimal places. 96