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Global Technologys capital structure is as follows: Debt 35 % Preferred stock 15 Common equity 50 The aftertax cost of debt is 6.00 percent; the
Global Technologys capital structure is as follows:
Debt | 35 | % |
Preferred stock | 15 | |
Common equity | 50 |
The aftertax cost of debt is 6.00 percent; the cost of preferred stock is 10.00 percent; and the cost of common equity (in the form of retained earnings) is 13.00 percent.
Calculate the Global Technologys 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.)
Weighted Cost | ||
Debt | % | |
Preferred Stock | ||
Common equity | ||
Weighted average cost of capital | 0.00 |
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