Evans Technology has the following capital structure Debt 30 Common equity 70 The aftertax cost of debt is 8 50 percent, and the cost of common equity (in the form of retained earnings) is 15 50 percent Weighted Cost Debt Common Equity Weighted average cost of capital a What is the firms weighted average cost of capital (Do not round intermediate calculations Input your answers as a percent rounded to 2 decimal places )

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Question: Evans Technology has the following capital structure. Debt 30% Common equity 70 The aftertax cost of debt is 8.50 percent, and the cost of common

Evans Technology has the following capital structure.

Debt 30%

Common equity 70

The aftertax cost of debt is 8.50 percent, and the cost of common equity (in the form of retained earnings) is 15.50 percent.

	Weighted Cost
Debt	%
Common Equity
Weighted average cost of capital	%

a. What is the firms weighted average cost of capital? (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)

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