Given the following information, calculate the weighted average cost of capital for Genex Corporation. Line up the calculations in the order shown in Table 111.

Percent of Capital Structure:

Debt 35%

Preferred stock 10

Common equity 55

Additional Information:

Bond coupon rate 13%

Bond yield 11%

Dividend, expected common $3.00

Dividend, preferred $10.00

Price, common $50.00

Price, preferred $98.00

Flotation cost, preferred $5.50

Corporate growth rate 8%

Corporate tax rate 30%