Intro

Idaho Engineering Inc. has a target capital structure of $34\%$ debt, $10\%$ preferred stock and $56\%$ common stock.

The interest rate on new debt is $4\mathrm{.}9\%($before taxes$),$ the yield on preferred stock is $8\%$ and the cost of retained

earnings is $12\%.$ The firm will not be issuing any new stock, and the tax rate is $35\%.$

Part $1$

What is the company's weighted average cost of capital?

Previous answers: $465$;