Determining weighted average cost of capital

Reference no: EM1374836

Global Technology's capital structure is given below:

DEBT - 60%
Preferred Stock - 5
Common Equity - 35

The after tax cost of debt is 6.5%; the cost of preferred stock is 10%; and the cost of common equity (in the form of retained earnings) is 13.5 percent.
Calculate Global Technology's weighted average cost of capital.

Reference no: EM1374836

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