Weir Inc. has a target capital structure of 40% debt, 20% preferred, and 40% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of retained earnings is 9.6%, and the tax rate is 40%. The WACC for Weir is:
- 6.81%
- 6.62%
- 6.77%
- 6.99%
- 6.60%