Answer:
10.25%
Explanation:
Data provided in the question:
Long-term debt = 45%, after-tax cost = 7%
Preferred stock = 15%, after-tax cost = 10%
Common stock equity = 40%, after-tax cost = 14%
Now,
The weighted average cost of capital for this firm will be calculated as:
= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost
or
= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14
or
= 0.0315 + 0.015 + 0.056
= 0.1025
or
= 0.1025 × 100%
= 10.25%
Answer: the is answer Democratic
The cpi is a measure of the overall cost of the goods and services bought by a typical consumer.
<h3>What is the CPI?</h3>
The consumer price index is a measure of inflation. It measure the price changes of a basket of goods bought by consumers.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
To learn more about, consumer price index, please check: brainly.com/question/26382640