Question: Travis & Sons has a capital structure that is based on 37 percent debt, 3 percent preferred stock, and 60 percent common stock. The pretax

Travis & Sons has a capital structure that is based on 37 percent debt, 3 percent preferred stock, and 60 percent common stock. The pretax cost of debt is 8.3 percent, the cost of preferred is 9.5 percent, and the cost of common stock is 13.5 percent. The tax rate is 21 percent. What is the weighted average cost of capital 10.81% 12.78% 12.56% 14.34% 12.11%

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