Evans Technology has the following capital structure. Debt Common equity The aftertax cost of debt is 6.00 percent, and the cost of common equity (in the form of retained earnings) is 13.00 percent. a. What is the firm's weighted average cost of capital? Note: Do not round intermediate calculations. Input your answers as a percent rounded to 30% 70 Answer is complete but not entirely correct. Weighted Cost 10.90 % 11.00 x 21.90 Debt Common equity Weighted average cost of capital An outside consultant has suggested that because debt is cheaper than equity, the firm should switch to a capital structure that is 50 percent debt and 50 percent equity. Under this new and more debt-oriented arrangement, the aftertax cost of debt is 7.00 percent, and the cost of common equity (in the form of retained earnings) is 15.00 percent. Answer is not complete. b. Recalculate the firm's weighted average cost of capital. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Debt Common equity Weighted average cost of capital Weighted Cost % % 0.00 decimal places. %

Evans Technology has the following capital structure. The aftertax cost of debt is 600 percent, and the cost of common equity (in the form of retained earnings) is 1300 percent a. What is the firm's weighted average cost of capital? Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal ploces. An outside consultant has suggested that because debt is cheaper than equity, the firm should switch to a capital structure that is 50 percent debt and 50 percent equity Under this new and more debt-oriented arrangement, the aftertax cost of debt is 700 percent, and the cost of common equity (in the form of retained earnings) is 1500 percent b. Recalculate the firm's weighted average cost of capital. Note: Do not round intermediate calculations. Input your answers os a percent rounded to 2 decimal places