Question: Problem 1 2 - 8 Colculoting WACC [ LO 3 ] Newecent Corporation has a target capeal structure of 6 0 percent common stock, 5

Problem 12-8 Colculoting WACC [LO3]
Newecent Corporation has a target capeal structure of 60 percent common stock, 5 percent prefertied stock, and 35 percent debt its cost of equity is 9 percent, the cost of prelerred shock is 4 perceet, and the pretax cont of debt is 5 prercent. The pelleviert twe rate in 21 prercent.
a. What is the compary's WMCC
Note; Do mot round intermediene colculations and enter your noweer as a percent rounded so 2 decimal places. e 9.3246
b. What is the aftelax cost of debet?
Nobe: Do not nound intermediene colculetions and enter your neweer as in percent rounded to 2 decimal pleces, eg.3255
Answeer is completle but not entirely correct.
\table[[A. VINOC,35504],[b. Mhertar coei al deat,5900]]
Problem 1 2 - 8 Colculoting WACC [ LO 3 ]

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