Given the following information, calculate the weighted average cost of capital for Skelly Corp.

Percent of capital structure:

Debt........................... 25%

Preferred stock............................................................... 15

Common equity............................................................. 60

Additional information:

Bond coupon rate......................................................................................... 14%

Bond yield to maturity.................................................................................. 13%

Dividend, expected common........................................................ $ 5.00

Dividend, preferred................................................................................ $12.00

Price, common................................................................................. $35.00

Price, preferred................................................................................ $49.00

Flotation cost, preferred....................................................... $ 2.50

Growth rate......................................................................................... 6%

Corporate tax rate......................................................................................... 35%