the firm's target capital structure is the mix of debt, preferred stock, and common equity the fim plans to raise funds for its future orojects, The target proportionin of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's welghted average cait of caspital (Whced, If the firm will not have to issue new common stock, then the cost of retained earnings is used in the firm's whccC colculation, However, if the firm will have to issue niw common stock, the cost of new common stock should be used in the firm's WACC calculation. Quantitative Problem: Barton Industries expects that its target capital structure for raiaing funds in the future for its capital badget will conain of ab9 gebt, 5\% preferred stock, and 5596 common equity. Note that the firm's marpinal tax rate is 25%. Adsume that the firm's cost of debt, re, is 9.5%, the fiam's cost of prefiried atock, Ie, is 8.7% and the firm's cost of equity is 12.1% for old equity, fre and 12.4% for new equity, fe. What is the firm's weighted average cost of cabital (Wacci) if it uses retained earnings as its source of common equity? Do not round intermedlate calculations. Round your answer to two decimal places. What is the firm's weighted average cost of capital (WACC 2 ) if it has to lssue new common stock? Do not round intermeviate calculations. Round your answer to two decirnal places