Using rounded whole percents for the various costs and weighted costs, what is the weighted average cost of capital for Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket. The optimal capital structure is listed below:

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What is the cost of debt of Foggy Futures Weather Forecasters? The firm is in the 40% tax bracket. The optimal capital structure is listed below:
 11ea10f6_a159_6161_b6b3_bb17649177fb_TB2040_00 
Cost of Debt using a financial calculator:
N 20
PV -940
Pmt 80
FV 1000
I = 8.64 x (1-.40) = 5.18 rounded to the nearest whole percent 5%
Cost of Retained Earnings:
 11ea10f6_a159_6162_b6b3_e3d4ac044fcb_TB2040_11 +.06 = 13.77% rounded to the nearest whole percent 14%
Using whole percents: (.25 X 5) + (.75 X 14) = 11.75% = 12%

Using Rounded Whole Percents for the Various Costs and Weighted