The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debe, preferred stock, and common equity, along with the cost of these components, are used to calcilate the firm's weighted average cost of capital (wacc). If the firm wili not have to issue new common stock, then the cost of retained earnings is used in the firm's WACC cakculation, However, if the firm will have to issue new common stock, the cost of nere common stock should be used in the firm's wacc calculation. Quantitative Problem: Barton Industries expects that its target coptal structure for raising funds in the future for its capital budget wir consist of 495 debt, 5w preferied stock. and 55% common equity. Note that the firm's marginat tax rate is 25%. Assume that the firm's cost of debt, ra, is 9.3%, the firm's cost of preferred stock, re. is 8.5% and the firm't cost of nquity is 11.9% for old equity, for and 12.3% for new equity, f0. What is the firm's weighted average cost of capitad (WacCi) if it uses reteined earnings as its source af common equity? Do not round intermediate calculations, Round your answer to two decimal places, What is the firm's weighted awerage cost of copital (WACC)] if it has to issue new common stock? Do not round intermediate calculations, Round your aniwer to twe decimal planes