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8. An analyst has gathered the following information regarding the capital structure and component costs for a company: Capital Source Debt Preferred stock Common

8. An analyst has gathered the following information regarding the capital structure and component costs for a company: Book

8. An analyst has gathered the following information regarding the capital structure and component costs for a company: Capital Source Debt Preferred stock Common stock Book Value (m) $20 $15 $22 Market Value (m) $19 $16 $30 Component cost (pre-tax) 5% 9% 12% The company's marginal tax rate is 30%. What is the company's weighted average cost of capital?

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