1. Baxter Inc. has a target capital structure of 0.20 debt, 0.50 preferred stock, and 0.30 common equity. The companys cost of debt is 3%, its cost of preferred stock is 8%, it cost of its cost of common equity is 16%. What is the companies cost of Capital?

Round to the nearest 0.1%. Enter your answer as a percentage. For example, if your answer is 2.5%, enter 2.5.