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The firm's tarpet captal structure is the mix of debt, preferred stock, and common equity the firm plans to ralse funds for its future profects.

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The firm's tarpet captal structure is the mix of debt, preferred stock, and common equity the firm plans to ralse funds for its future profects. The tarpet proportans of debt, issue new common stock, then the cost of retained earnings is used in the firm's WACC calculation. However, if the firm will have to issue new comman itock, the couk of neic common stock should be used in the firm's wacc calculation. firm's cost of equity is 13.3% for oid equity, rb and 13.8% for new equity, rs. What is the firm's weighted average cost of capital (WACC, if it uses retained arnings as its bource 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 common stock? Do not round intermediate calculations. Round your ansmer to Rwo decimal pacet \%

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