Answer:
the weighted average cost of capital is 9.25%
Step-by-step explanation:
The computation of the weighted average cost of capital is shown below;
= Cost of debt × weight of debt × (1 - tax rate) + cost of equity × weight of equity + cost of preferred stock × weight of preferred stock
= 35% × 6.50% × (1 - 0.40) + 11.25% × 55% + 6% × 10%
= 1.365% + 7.288% + 0.6%
= 9.25%
Hence, the weighted average cost of capital is 9.25%
The same would be considered and relevant