Brady Company has a capital structure that consists of 30% debt, 25% preferred stock, and 45% common stock. Given the following information, compute Brady Companys weighted average cost of capital that will be used for capital budgeting decision making.

Price, Common: $73

Price, Preferred: $92

Flotation Cost, Preferred: $3.75

Growth Rate, Common: 5.6%

Corporate Tax Rate: 37%

Dividend, Preferred: $8.55

Dividend, Expected Common: $7.40

Bond Information:

Par Value $1,000

Remaining Years to Maturity 14

Coupon Rate 11.4%

Current Selling Price $1,312.75

Interest Payments Paid Semi-Annually