Each source of capital and weighted average cost of capital

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Global Technology’s capital structure is as follows: Debt 15 % Preferred stock 50 Common equity 35 The aftertax cost of debt is 7.50 percent; the cost of preferred stock is 11.50 percent; and the cost of common equity (in the form of retained earnings) is 14.50 percent. Calculate the Global Technology’s weighted cost of each source of capital and the weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) HintsReferenceseBook & Resources WorksheetDifficulty: IntermediateLearning Objective: 11-01 The cost of capital represents the weighted average cost of the source of financing to the firm. Check my work ©2017 McGraw-Hill Education. All rights reserved.

Reference no: EM131456684

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