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    Weighted Average cost of capital

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    Global Technology's capital structure is as follows:
    Debt . . . . . . . . . . . . . . 35%
    Preferred stock . . . . . . 15
    Common equity . . . . . 50
    The aftertax cost of debt is 6.5 percent; the cost of preferred stock is 10 percent; and the cost of common equity (in the form of retained earnings) is 13.5 percent.
    Calculate Global Technology's weighted average cost of capital in a manner similar to Table 11-1 on page 313.

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    https://brainmass.com/business/business-math/165930

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    This explains the computation of Weighted average cost of capital

    $2.19