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Calculate the Global Technology weighted cost

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Reference no: EM132604039

Question - Global Technology's capital structure is as follows:

Debt 15% Preferred stock 50 Common equity 35

The after tax cost of debt is 7.00 percent; the cost of preferred stock is 11.00 percent; and the cost of common equity (in the form of retained earnings) is 14.00 percent.

Calculate the Global Technology's weighted cost of each source of capital and the weighted average cost of capital.

Reference no: EM132604039

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