Question: The capital structure for HCA is provided below. If the firm has a 5% after tax cost of debt, 9% commerical loan rate, a 11.5%

The capital structure for HCA is provided below. If the firm has a 5% after tax cost of debt, 9% commerical loan rate,
a 11.5% cost of preferred stock, an 15% cost of common stock, and given the dollar amounts provided below, what is the firm's
weighted average cost of capital (WACC)?
Capital Structure (in K's) Weights Individual Costs Weighted Costs
Bonds $ 1,083 $ 0.14 5.00% $ 0.01
Commercial Loans $ 2,845 0.361178 9.00% 0.032506
Preferred Stock $ 268 0.034023 11.50% 0.003913
Common Stock $ 3,681 0.46731 15.00% 0.070096
$ 7,877 $ 1.00 WACC $ 0.11

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