Question: 1 . Consider a firm that has 3 2 % of debt, 9 % of preferred stock, and 5 9 % of equity. The rates

 1. Consider a firm that has 32% of debt, 9% of preferred stock, and 59% of equity. The rates of return for debt, preferred stock, and equity are 4%,9%, and 14%, respectively. The corporate tax rate is 36%. What is the weighted average cost of capital?  answer as a percentage .
 
 2. Consider a firm that has a debt-equity ratio of 1. The rate of return for debt is 10% and the rate of return for equity is 13%. The corporate tax rate is 40%. What is the weighted average cost of capital? Answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer. 

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