The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to rase funds for its future projects. The target proportions of debt, preferted stock; and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WMcC), If the firm will not have to ispun new comsmon stock, then the cost of retained earnings is used in the firm's Wacc ealculation. However, if the firm witi have to issue new cormmon stock, the cost of new common stock should be used in the firm's WAcC cakculation. Quantitative Problems Aarton Industries expects that its target capital structure for raiwing funds in the future for its capial budget will consist of 40\% debt, 5 Fil preferred stocki and 55% commen equity' Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, fo is 9.0%, the firm's cost of preferred stock, fou is 8.2% and the firm's commen equity? Do not round intermediate calculations. Round your answer to two dedmbl places. Wriat is the firm's weighted ayerage cost of capital (WACC?) if it has to issue new common stock? Do nok round intermedute calculations: Round your ansher to two decimal piaces