Given the following information on Big Brothers, Inc. capital structure, compute the company's weighted average cost of capital (WACC). The company's marginal tax rate is 40%.
Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
|
Type of Capital
|
Percent of Capital Structure
|
Before-Tax Component Cost
|
|
Bonds
|
34%
|
9.90%
|
|
Preferred Stock
|
14%
|
13.78%
|
|
Common Stock
|
Please calculate it
|
14.52%
|