Question: please show work Preston Construction (PC) has determined the yield to maturity (YTM) on new bonds is 7 percent, its cost of retained earnings is

please show work

Preston Construction (PC) has determined the yield to maturity (YTM) on new bonds is 7 percent, its cost of retained earnings is 9 porcent, and its cost of now common stock is 13 percent, if PCt copital structure consists of 30 percent debt and 70 percent common equity, what is its weighted average cost of capital (WACC) if it: (a) does not have to issue new stock to raise additional funds and (b) must issue new stock to raise additional funds? DWos mamginal tar rate is 40 percent

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