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Homemade Flying Machines has a capital structure of 2 1 % debt, 1 0 % preferred stock and 6 9 % common stock. The pre

Homemade Flying Machines has a capital structure of

21 %

debt,

10 %

preferred stock and

69 %

common stock. The pre

-

tax cost of debt is

5 %,

the cost of preferred stock is

8 %

and the cost of equity is

13 % .

The firm's marginal tax rate is

21 % .

what is the WACC?

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