Clipboard K40 1 2 3 4 5 6 7 8 9 10 A B Font X fx C D ly E F Alignment G H 1 Number J 5 Formatting Table Styles Styles K 7. (10) Organic Produce Corporation has 9 million shares of common stock outstanding, 550,000 shares of 7 percent preferred stock outstanding, and 185,000 of 7.8 percent semiannual bonds outstanding. The face (par) values of each preferred stock and bond are $100 and $1,000, respectively. The common stock currently sells for $70 per share and has a beta of 1.40, the preferred stock currently sells for $104.00 per share, and the bonds have 15 years to maturity and sell for 105 percent of par (face) value. The market risk premium is 8 percent, T-bills yield 5.0 percent, and the firm's tax rate is 19 percent. What is the firm's weighted average cost of capital? L

7. (10) Organic Produce Corporation has 9 million shares of common stock outstanding, 550,000 shares of 7 percent preferred stock outstanding, and 185,000 of 7.8 percent semiannual bonds outstanding. The face (par) values of each preferred stock and bond are $100 and $1,000, respectively. The common stock currently sells for $70 per share and has a beta of 1.40 , the preferred stock currently sells for $104.00 per share, and the bonds have 15 years to maturity and sell for 105 percent of par (face) value. The market risk premium is 8 percent, T-bills yield 5.0 percent, and the firm's tax rate is 19 percent. What is the firm's weighted average cost of capital