Please show step by step how to solve the problem.

Answer: 6.45

1.) Jerry's Donuts has the following costs:

Preferred stock is 6.9%

After tax cost of debt is 4.9%

Cost of equity is 7.6%

Cost of new stock is 14.1%

Jerry wants 40% debt, 10% preferred and 50% from retained earnings.

What is his WACC?

Post your answer as a % with 2 decimal places.

Thank you.

Please show step by step how to solve the problem.

Answer: 44.4

2.) The firm has:

Long-term liabilities of $54M

Preferred stock of $11M

Common equity of $52M

What is the capital structure % of common stock?

Post your answer as a % with 1 decimal place.

Add to debt, preferred and equity to find the total capital

amount of debt/ total capital = % of debt

Thank you.