Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of $40\%$ 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, rd$,$ is $9\mathrm{.}8\%,$ the firm's cost of preferred stock, rp$,$ is $9\mathrm{.}0\%$ and the firm's cost of equity is $12\mathrm{.}4\%$ for old equity, rs$,$ and $12\mathrm{.}9\%$ for new equity, re$.$ What is the firm's weighted average cost of capital $($WACC$1)$ if it uses retained earnings as its source of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

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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.

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