FIN 370- Metals Corp. has $2,575,000 of debt, $550,000

FIN 370- Metals Corp. has $2,575,000 of debt, $550,000

Subject: Business    / Finance   
Question

Metals Corp. has $2,575,000 of debt, $550,000 of preferred stock, and $18,125,000 of common equity. Metals Corp.’s after-tax cost of debt is 5.25%, preferred stock has a cost of 6.35%, and newly issued common stock has a cost of 14.05%. What is Metal Corp’s weighted average cost of capital?