Intro You have collected the following information about a company: Before-tax cost Source of capital Long-term debt Preferred stock Market value $170,000 $50,000 8% 11% 17% for retained earnings Common equity $420,000 20% for new common stock Total $640,000 The company's total (federal plus state) marginal tax rate is 30%. Part 1 IB | Attempt 2/3 for 10 pts. What is the weighted average cost of capital, if all common equity comes from retained earnings? 3+ decimals Submit 18 | Attempt 1/3 for 10 pts. Part 2 What is the weighted average cost of capital, if all common equity comes from newly issued stock? 3+ decimals Submit