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What is the company weighted average cost of capital

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Baxter Inc. Has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company's after-tax cost of debt is 7%, it's cost of preferred stock is 11%, it's cost of retained earnings is 15%, and it's cost of new common stock is 16%. The company stock has a beta of 1.5 and the company's marginal tax rate is 35%. What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion?

Reference no: EM132444803

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