problem: You were employed as a consultant to Locke Company, and you were provided with the Following data:
Target capital structure: 40 percent debt, 10 percent preferred, & 50 percent common equity. The interest rate on new debt is 7.5 percent, the yield on the preferred is 7.0 percent, the cost of retained earnings is 11.50 percent, & the tax rate is 40 percent. The firm will not be issuing any new stock. find out the firm's WACC?