Weighted average cost of capital $($LO$11-1)$

Evans Technology has the following capital structure:

The aftertax cost of debt is $6$ percent, and the cost of common equity $($in the form of retained earnings$)$ is $13$ percent.

a$.$ What is the firm's weighted average cost of capital?

average cost of capital.

c$.$ Which plan is optimal in terms of minimizing the weighted average cost of capital?