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Business, 05.05.2020 05:33 alflores27p91de1

Given the following information: Percent of capital structure: Preferred stock 35 % Common equity (retained earnings) 45 Debt 20 Additional information: Corporate tax rate 30 % Dividend, preferred $ 6.00 Dividend, expected common $ 2.80 Price, preferred $ 103.00 Growth rate 7 % Bond yield 5 % Flotation cost, preferred $ 8.40 Price, common $ 74.00 Calculate the weighted average cost of capital for Digital Processing Inc.

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