Brooks Window Shields Incorporated is trying to calculate its cost of capital for use in a capital budgeting decision. Mr$.$ Glass, the vice president of finance, has given you the following information and has asked you to compute the weighted average cost of capital.The company currently has outstanding a bond with a $9\mathrm{.}2$ percent coupon rate and another bond with a $6\mathrm{.}2$ percent coupon rate. The firm has been informed by its investment banker that bonds of equal risk and credit rating are now selling to yield $10\mathrm{.}2$ percent.The common stock has a price of $$66$ and an expected dividend $($D$1)$ of $$3\mathrm{.}50$ per share. The firm's historical growth rate of earnings and dividends per share has been $5\mathrm{.}2$ percent, but security analysts on Wall Street expect this growth to slow to $3$ percent in future years.The preferred stock is selling at $$62$ per share and carries a dividend of $$4\mathrm{.}50$ per share. The corporate tax rate is $40$ percent. The flotation cost is $1\mathrm{.}8$ percent of the selling price for preferred stock. The optimum capital structure is $20$ percent debt, $15$ percent preferred stock, and $65$ percent common equity in the form of retained earnings.Compute the cost of capital for the individual components in the capital structure.Note: Do not round intermediate calculations. Input your answers as a percent rounded to $2$ decimal places. Calculate the weighted cost of each source of capital and the weighted average cost of capital.Note: Do not round intermediate calculations. Input your answers as a percent rounded to $2$ decimal places. Prev Question $14$ of $14$ Total $14$ of $14$ Visit question mapThis is the last question in the assignment. To submit, use Alt $+$ S$.$ To access other questions, proceed to the question map button.Next