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Given the following information: Percent of capital structure: Preferred stock 20 % Common equity 40...

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Finance

Given the following information:

Percent of capital structure:

Preferred stock 20 %

Common equity 40

Debt 40

Additional information:

Corporate tax rate 34 %

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

Debt:

Perferred Stock:

Common equity:

Weighted average cost of capital:

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