Global Technology's capital structure is as follows:

Debt 15 % Preferred stock 50 Common equity 35

The aftertax cost of debt is 7.00 percent; the cost of preferred stock is 11.00 percent; and the cost of common equity (in the form of retained earnings) is 14.00 percent.

Calculate the Global Technology's weighted cost of each source of capital and the weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

Notice that this problem asks for the weighted costs. These are the unweighted costs times the weights. Like this: (kd)(wd) = weighted cost of debt.

Debt

Preferred stock

Common equity

Weighted average cost of capital