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Global Technology's capital structure is as follows: Debt 35% Preferred stock 15% Common equity 50% The aftertax cost of debt is 6.5 percent; the cost
Global Technology's capital structure is as follows: Debt 35% Preferred stock 15% Common equity 50% The aftertax cost of debt is 6.5 percent; the cost of preferred stock is 10 percent; and the cost of common equity (in the form of retained earnings) is 13.5 percent. Calculate Global Technology's weighted average cost of capital in a manner similar to Table 11-1. Solution Problem 11-19 Instructions Complete the table below by entering formulas. United Business Forms Cost (aftertax) Weighted Cost Weights Debt (Kd) FORMULA 35% FORMULA Preferred stock (Kp) FORMULA 15% FORMULA Common equity (Ke) (retained earnings) FORMULA 50% FORMULA Weighted average cost of capital (Ka) FORMULA Please provide the Excel formulas with the solution
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