The before tax cost of debt is .06 or 6%. The Tax rate is .4 or 40% The cost of preferred is .07 or 7% The cost of retained earnings (equity) is .11.9or 11.9% What is the firm's weighted average cost of capital? The target proportions are 60% debt, 35% equity and 5% preferred. post your answer with 1 decimal place as a percentage. 10.5 for example