Note: the target common equity weight and target debt weight add up to 0.8 and NOT 1. Does it matter that the D and E values were given as target weights (in percentage) rather than dollar amount? Note: This is the question as provided, there is no further info.

Alpha Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Alpha Corporations weighted average cost of capital?

Target common equity weight:	45 percent
Target debt weight:	35 percent
Cost of equity:	21 percent
Cost of debt:	9 percent
Tax rate:	31 percent