Quantitative Problem: Barton Industries expects that its target capital structure for the future for its capital budget will consist of $40\%$ debt, $5\%$ preferred stock, and $55\%$ common equir. $.........$ firm's marginal tax rate is $25\%.$ Assume that the firm's cost of debt, $r_d,$ is $9\mathrm{.}8\%,$ the firm's cost of preferred stock, $r_p,$ is $9\mathrm{.}0\%$ and the firm's cost of equity is $12\mathrm{.}4\%$ for old equity, $r_s,$ and $12\mathrm{.}8\%$ for new equity, $r_e.$ What is the firm's weighted average cost of capital $($ WACC ${?}_1)$ if it uses retained earnings as its source of common equity? Do not round intermediate calculations. Round your answer to two decimal places.

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What is the firm's weighted average cost of capital $($ WACC ${?}_2)$ if it has to issue new common stock? Do not round intermediate calculations. Round your answer to two decimal places.

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