Your company?s target cap

Your company?s target cap

Your company?s target capital structure is 35% debt, 15% preferred, and 50% common equity. The yield to maturity on the debt is 7.50%, the return on the preferred is 7.00%, the cost of retained earnings is 12.5%, and the tax rate is 40%. The firm will not be issuing any new security. What is the WACC?I got WACC as : 8.88 But got confuse halfway.Please help.

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