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,...

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Finance

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 DigitalProcessing Inc. (Do not round intermediate calculations.Input your answers as a percent rounded to 2 decimal places.)

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Given the following information:Percent of capital structure:Preferred stock20%Common equity (retained earnings)40Debt40Additional information: Corporate tax rate24%Dividend, preferred$8.50Dividend, expected common$2.50Price, preferred$105.00Growth rate7%Bond yield9.5%Flotation cost, preferred$3.60Price, common$75.00Calculate the weighted average cost of capital for DigitalProcessing Inc. (Do not round intermediate calculations.Input your answers as a percent rounded to 2 decimal places.)


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