Reference no: EM131627597

Given the following information, calculate the weighted average cost for the Ban Corp. 

Percent of capital structure:

Preferred stock                                                  10%

Common equity                                                 70%

Debt                                                                  20%

Additional information:

Corporate tax rate                                            34%

Dividend, preferred                                           $8.00

Dividend, expected common                             $4.00

Price, preferred                                                 $80.00

Growth rate                                                      5%

Bond yield                                                         7%

Price, common                                                   $80.00