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Global Technologys capital structure is as follows: Debt 50% Preferred Stock 13 Common Equity 15 The aftertax cost of debt is 7.50 percent; the cost
Global Technologys capital structure is as follows: | ||||||||||||||||||||||||
Debt | 50% | |||||||||||||||||||||||
Preferred Stock | 13 | |||||||||||||||||||||||
Common Equity | 15 | |||||||||||||||||||||||
The aftertax cost of debt is 7.50 percent; the cost of preferred stock is 11.50 percent; and the cost of common equity (in the form of retained earnings) is 14.50 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 | % |
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