11-23 (Algo) Weighted average cost of capital [LO11-1] Given the following information: Percent of capital structure: Preferred stock Common equity (retained earnings) Debt Additional information: 30% 40 30 Corporate tax rate. 40% Dividend, preferred Dividend, expected common $ 5.00 $ 3.80 Price, preferred $ 101.00 Growth rate 6% Bond yield 6% Flotation cost, preferred $ 7.40 $ 72.00 Price, common Calculate the weighted average cost of capital for Digital Processing Incorporated Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Weighted Cost Growth rate Bond yield 6% 6% 02:18:42 Book fint Flotation cost, preferred Price, common $ 7.40 $ 72.00 Calculate the weighted average cost of capital for Digital Processing Incorporated Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. rint ences Debt Preferred stock Common equity (retained earnings) Weighted average cost of capital Weighted Cost % %