The firm's targot 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 deht, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WacC). If the firm will not have to issue new comenon stock, then the cost of retained earnings is used in the firm's wacc calculation, However, if the firm will hawe to issue new common stock, the cost of new commen stock should be used in the firm's WAcC, calculation, Quantitative Problem. Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40\% debt, 5\% preferred stock, and 55% common equity, Note that the firm's marginal tax rate is 25%. Assume that the firm's cost of debt, fdy is 9.0%, the firm's cost of preferred stock, Fp, is 8.2% and the firm's cost of equity is 11.6% fer oid equity, F, and 12.0% for new equity, fe. What is the firm's weighted average cost of capital (WACC.) if it uses retained earnings as its source of common equity? Do not round intermediate calculations. Round your answer to two decimal places. What is the firm's weighted average cost of capital (WaCC 2 ) if it has to issue new commen stock? Do not round intermediate calculations. Aound your answir to two decimal places