Question: Quantitative Problem: Barton Industries expects that its target capital structure for raisiog funds in the future for its capital bucpet well consist of 40 se
Quantitative Problem: Barton Industries expects that its target capital structure for raisiog funds in the future for its capital bucpet well consist of 40 se debt, 5% preferred stock, and 55% common equity, Note that the firm's marginal tax rate is 25\%. Assume that the firm's cast of debt, r4 is 10.2%, the firm's cast of preferred stock, rp, is 9.4% and the firm's cost of equity is 12.8% for old equity, rw and 13.1% for new equity, rw. What is the firm's neighted average cost of capital (wacC.) if if uses retained earnings as its source of common equity? Do not round intermediate calculstions. Round your answer to two decmal places. What is the firm's weighted average cost of capital ( WACC 2 ) it it has to issue new comenion stock? Do not round intermed ote caleulations. Round your answer to two decimal places
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