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Business, 27.03.2020 02:14 fbillinton

Given the following information: Percent of capital structure: Preferred stock 10 % Common equity (retained earnings) 60 Debt 30 Additional information: Corporate tax rate 34 % Dividend, preferred $ 9.00 Dividend, expected common $ 3.50 Price, preferred $ 102.00 Growth rate 6 % Bond yield 10 % Flotation cost, preferred $ 3.20 Price, common $ 70.00 Calculate the weighted average cost of capital for Digital Processing Inc.

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