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Given the following information, calculate the weighted average cost for the Ban Corp. Percent of capital structure: Preferred stock10% Common equity70% Debt20% Additional information: Corporate

Given the following information, calculate the weighted average cost for the Ban Corp.

Percent of capital structure:

Preferred stock10%

Common equity70%

Debt20%

Additional information:

Corporate tax rate34%

Dividend, preferred$8.00

Dividend, expected common$4.00

Price, preferred$80.00

Growth rate5%

Bond yield7%

Price, common$80.00

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