Global Technologys 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 Technologys weighted average cost of capital in a manner similar to Table 11-1.