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Weighted Average Cost of Capital Austin, Inc. plans to finance its expansion by raising the...

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Accounting

Weighted Average Cost of Capital Austin, Inc. plans to finance its expansion by raising the needed investment capital from the following sources in the indicated proportions and respective capital cost rates.

Capital Cost
Source Proportion Rate
Bonds 45% 15%
Preferred stock 10% 13%
Common stock 25% 19%
Retained earnings 20% 17%
100%

Calculate the weighted average cost of capital. Round answers to one decimal place. For example, 0.457 = 45.7%.

Weighted Average
Cost of Capital
Bonds Answer

Preferred stock Answer

Common stock Answer

Retained earnings Answer

Answer

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