Question: Builtrite's target capital structure is 40% common stock, 20% preferred stock and 40% debt. If the cost of common is 16%, the cost of preferred

Builtrite's target capital structure is 40% common stock, 20% preferred stock

Builtrite's target capital structure is 40% common stock, 20% preferred stock and 40% debt. If the cost of common is 16%, the cost of preferred stock is 12% and the before tax cost of debt is 6% (the tax rate is 34% ), what is Builtrite's weighted average cost of capital? 10.35% 8.32% 11.20% 10.38%

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