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What is the weighted-average cost of capital for a firm with the following sources of funds and corresponding required rates of return: $15 million common
What is the weighted-average cost of capital for a firm with the following sources of funds and corresponding required rates of return: $15 million common stock at 15%, $5 million preferred stock at 9%, and $10 million debt at 6%. All amounts are listed at market values and the firm's tax rate is 35%.
A. 9.0%
B. 10.3%
C. 12.1%
D. 13.5%
E. 14.4%
*show work please
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