1. Given the following information, calculate the weighted average cost of capital for Digital Processing Inc. Line up the calculations in the order shown in Table 11-1. 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 Dividend, preferred........................... $105.00 Growth rate....................................... 7% Bond yield.......................................... 9.5 Flotation cost, preferred.................... $3.60 Price, common................................... $75.00