J & B Corp.is investing in a major capital budgeting project that will require the expenditure of $16 million.The money will be raised by issuing $2 million of bonds,$4 million of preferred stock,and $10 million of new common stock.The company estimates is after-tax cost of debt to be 7%,its cost of preferred stock to be 9%,the cost of retained earnings to be 14%,and the cost of new common stock to be 17%.What is the weighted average cost of capital for this project?

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The Answer of J & B Corp.is investing in a major capital budgeting project that will require the expenditure of $16 million.The money will be raised by issuing $2 million of bonds,$4 million of preferred stock,and $10 million of new common stock.The company estimates is after-tax cost of debt to be 7%,its cost of preferred stock to be 9%,the cost of retained earnings to be 14%,and the cost of new common stock to be 17%.What is the weighted average cost of capital for this project?