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    Weighted Average Cost of Capital in Global Technology

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    Global Technology's capital structure is as follows:

    Debt
    35%
    Preferred stock
    15%
    Common equity
    50%

    The after-tax 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 ( WACC ).

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    https://brainmass.com/business/business-math/weighted-average-cost-capital-global-technology-112545

    Solution Summary

    Weighted average cost of capital is calculated.

    $2.19