Quantitative Problem: Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock, and 55% common equity. Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, rd, is 6.9%, the firm's cost of preferred stock, rps, is 6.4% and the firm's cost of equity is 10.9% for old equity, rs, and 11.4% for new equity, re. What is the firm's weighted average cost of capital (WACC 1 ) if it uses retained earnings as its source of common equity? Do not round intermediate calculations. Round your answer to three decimal places. % What is the firm's weighted average cost of capital (WACC 2 ) if it has to issue new common stock? Do not round intermediate calculations. Round your answer to three decimal places. %