The capital structure for the ABC Corporation is provided below. The company plans to maintain its debt structure in the future. If the firm has a 7 percent after-tax cost of debt, a 12.5 percent cost of preferred stock, and a 20 percent cost of common stock, what is the firm’s weighted average cost of capital?

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Bonds Preferred stock Common stock Total CAPITAL STRUCTURE (000) 2,100 350 3,400 5,850