Given the following information: Given the following information:

Percent of capital structure:

Additional information: Calculate the weighted average cost of capital for Digital Processing Inc. $($Do not round intermediate calculations. Input your

answers as a percent rounded to $2$ decimal places.$)$

Notice that this problem asks for the weighted costs. These are the unweighted costs times the weights. Like this: $(k_d)(w_d)=$ weighted cost $of$ debt. ${?}_{(})$

Percent of capital structure:

Preferred stock $10\%$

Common equity $($retained earnings$)40$

Debt $50$

Additional information:

Corporate tax rate $34\%$

Dividend, preferred $ $7\mathrm{.}00$

Dividend, expected common $ $2\mathrm{.}50$

Price, preferred $ $104\mathrm{.}00$

Growth rate $8\%$

Bond yield $9\%$

Flotation cost, preferred $ $9\mathrm{.}40$

Price, common $ $76\mathrm{.}00$

Calculate the weighted average cost of capital for Digital Processing Inc. $($Do not round intermediate calculations. Input your answers as a percent rounded to $2$ decimal places.$)$

Notice that this problem asks for the weighted costs. These are the unweighted costs times the weights. Like this: $($kd$)($wd$)=$ weighted cost of debt.