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Given the following information 20% 10% 70% Percent of capital structure: Debt Preferred stock Common equity Additional information: Bond coupon rate Bond yield Dividend, expected

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Given the following information 20% 10% 70% Percent of capital structure: Debt Preferred stock Common equity Additional information: Bond coupon rate Bond yield Dividend, expected common Dividend, preferred Price, connon Price, preferred Flotation cost, preferred Corporate growth rate Corporate tax rate 8% 6% $2.89 $9.89 $45.ee $114.80 $7.5e 2% 405 Gentex is planning to expand its business domestically. It will invest in projects of that are of the same risk profile of the firm. You have been asked to calculate the firm's WACC using the information provided above and based on the comments below. Complete the table below to calculate the weighted average cost of capital for Genex Corporation Enter the weighted cost of each source of financing as shown in Table 11-1 Please note the following: 1. Flotation costs are relevant to the calculation of the cost of preferred stock only, 2. Regarding debt, ignore flotation costs or assume the are equal to zerio as no information is provided. 3. Regarding equity, the firm will use retained earnings only. 4. Common dividends are expected to grow at the same rate as the corporate growth rate. (Do not round your intermediate calculations and round your final answers to 2 decimal places. Note that all answers are expressed as percentages.) Weighted Cost Debt (ka) Preferred stock (p) Common equity (Re) X Weighted average cost of capital (ka)

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