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5 p You are in charge of estimating you company's weighted average cost of capital....

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5 p You are in charge of estimating you company's weighted average cost of capital. The company's target capital structure is 30% debt, 20% preferred stock, and 50% common stock. Its current before-tax cost of debt is 10.2%, and flotation cost for debt can be ignored. Its preferred stock has an after-tax cost of 12.6%. The company has just paid a common stock dividend (Do) of $2.21 and expects to have a constant dividend growth rate of 7.1%. Its common stock currently sells for $30 per share Flotation cost on new common stock would total 6.1%. Its tax rate is 40% What is the company's overall WACC when newly issued common stock is used as the common equity component? Use the Dividend Growth Model (or DCF approach) to estimate the cost of newly issued common stock. Round your answer to two decimal places of percentage, but do not enter in your answer eg. XXXX (Hint: Use the WACC formula by taking into account costs of debt preferred stock, and commom

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