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The firm's target copital strucrire is the mix of debt, preferred stock, and common equity the firm plans to reme funds for its huaure projects.

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The firm's target copital strucrire is the mix of debt, preferred stock, and common equity the firm plans to reme funds for its huaure projects. The target proportions of debt, prieferied stock, and: common equay, alang with the cost of these components, are used to calculate the furm's weghted werage cont of copiat (WhcG). 1f the frrm vill nok hase to issue nea commen stock, then the cont of tetained camiogs is used in the frim's Whce colculatid. However, It the firm wil have to issue new comenon stock, the cost of new common stock should be used in the firm's WAcC calculation Quantitative Problem: Barton thidustries expects that as target capital structure for raising funds in the future for its capital budget will ceinsst of tow debt, 5% preferned utock; and 55 til for odd equity, ifu and 13.5\% for new eqody, lo. What is the firm's weighted avebge cost of capital (Whaci) af it usen retained eamings as iss noutce of common equity? Do not round intermedigte calculations Round your anwer to two decimal places. What is the firm's weighed average cost of capital (WACCj) it it has to wye ner commen stock? no not round intermediate calculatiens. Round your ariswer to two deamat placek

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