Problem:
A firm finances itself with 30% debt, 60% common equity, and 10% preferred stock. The before-tax cost of debt is 5%, the firm's cost of common equity is 15%, and that of preferred stock is 10%. The marginal tax rate is 30%.
Required:
Question: What is the firm's weighted average cost of capital? show work if possible.
Note: Please show how to work it out.