Calculate the weighted average cost of capital on the basis of Historical Market Value Weights for:
Long-term debt = 30%
Preferred stock= 15%
Common stock equity = 55%
Cost of debt =7.2%
Cost of preferred stock = 13.5%
cost of retained earnings = 16%
Cost of common stock = 18%
Company's debt represents 25%, preferred stock 10%, common stock equity represents 65% of total capital.