Below is the long term and capital section of the balance sheet for the Seattle Distributing Co. Category Value Notes Payable $300,000

Bonds Payable 500,000

Preferred Stock 100,000

Common Stock 500,000

Retained Earnings 400,000

Interest of notes is 12%, bonds payable 8%, preferred stock dividends are 5% and the common shareholders opportunity cost is 10%. The tax rate is 25%. a. Compute the average weighted cost of capital. You may want to calculate your answer using Excel, and paste the solution into the solution window.