Calculate the weighted average cost of captial

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Floatation devices captial structure is as follows: debt 25%, preferred stock 10%, common equity 65%. The aftertax cost of debt is 9%, the cost of preferred stock is 12% and the cost of common equity (in form of retained earnings) is 14%. Calculate the weighted average cost of captial. Please show the work. Thank you

Reference no: EM13273533

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