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Weighted Average Cost of Capital Gardner, Inc., plans to finance its expansion by raising the needed investment capital from the following sources in the indicated

Weighted Average Cost of Capital Gardner, Inc., plans to finance its expansion by raising the needed investment capital from the following sources in the indicated proportions and respective capital cost rates:

Capital Cost
Source Proportion Rate
Bonds 40% 16%
Preferred stock 20% 12%
Common stock 30% 15%
Retained earnings 10% 12%
100%

Calculate the weighted average cost of capital. Round answers to one decimal place. For example, 0.457 = 45.7%.

Weighted Average
Cost of Capital
Bonds Answer
Preferred stock Answer
Common stock Answer
Retained earnings Answer
Answer

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