Vaso Tools Gmbh uses debt, preferred stock, and common stock to raise capital. The firms capital structure

Question:

Vaso Tools Gmbh uses debt, preferred stock, and common stock to raise capital. The firm’s capital structure targets the following proportions: debt, 55%; preferred stock, 20%; and common stock, 25%. If the cost of debt is 8%, preferred stock costs 11%, and common stock costs 14%, what is Vaso’s weighted average cost of capital (WACC)?

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