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Given the following information: Percent of capital structure: Preferred stock 20 % Common equity (retained earnings)...

Given the following information:


Percent of capital structure:

Preferred stock 20 %
Common equity (retained earnings) 40
Debt 40

Additional information:

    

Corporate tax rate 24 %
Dividend, preferred $ 8.50
Dividend, expected common $ 2.50
Price, preferred $ 105.00
Growth rate 7 %
Bond yield 9.5 %
Flotation cost, preferred $ 3.60
Price, common $ 75.00

Calculate the weighted average cost of capital for Digital Processing Inc. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
  

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jeff jeffy answered 2 months ago
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