Weighted average cost of capital for digital processing

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Given the following information: Percent of capital structure: Preferred stock 10 % Common equity 50 Debt 40 Additional information: Corporate tax rate 34 % Dividend, preferred $ 9.00 Dividend, expected common $ 4.50 Price, preferred $ 105.00 Growth rate 7 % Bond yield 7 % Flotation cost, preferred $ 5.50 Price, common $ 87.00 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.)

Debt

Preferred Stock

Common equity

Weighted average cost of capital

Reference no: EM131825383

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