External funds

# of Shares/Bonds Issued FMV for One Share/Bond Preferred Shares 17,500 65.00 Common Equity 121,000 23.00 Debt 2,000 980.00 Add'l Info Corporate Tax Rate 38% Dividend, Preferred $ 6.40 Dividend, Common $ 1.00 (Next Dividend Payment) Price, Preferred $ 65.00 Price, Common $ 23.00 Corporate Growth Rate 6% Bond Yield (Mkt Rate) 11% Flotation Costs, Preferred 5% Flotation Costs, Common $ 1.81 / Share Flotation Costs, Debt 7% Question 3 (4 marks) Given the information from Question 2, compute the Weighted Average Cost of Capital (WACC) for externally generated funds