Corporation weighted average cost of capital

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Carnet Corp. will finance its next major expansion with 40% debt, 10% preferred stock, and 50% new common stock. Carnet's after-tax cost of debt is 5.4%, cost of preferred stock is 6%, cost of retained earnings is 13%, and cost of new common stock is 15.9%. What is the corporation's weighted average cost of capital? Submit your answer as a percentage and round to two decimal places (Ex. 0.00%)

Reference no: EM132396781

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