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Bama Inc has a pre - tax cost of debt of 7 . 9 percent, a cost of equity of 1 5 percent, and a

Bama Inc has a pre-tax cost of debt of 7.9 percent, a cost of equity of 15 percent, and a cost of preferred stock of 8.1 percent. The firm has 210,000 shares of common stock outstanding at a market price of $26 a share. There are 27,000 shares of preferred stock outstanding at a market price of $42 a share. The bond issue has a face value of $570,000 and a market quote of 101.0 percent of face value. The company's tax rate is 32 percent.
What is the firm's weighted average cost of capital?

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