Given the following information:

Percent of capital structure:

Preferred stock 20%

Common equity (retained earnings) 40

Debt 40

Additional information:

Corporate tax rate24%

Dividend, preferred$8.50

Dividend, expected common$2.50

Price, preferred$105.00

Growth rate7%

Bond yield9.5%

Flotation cost, preferred$3.60

Price, common$75.00

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.)

Weighted Cost

Debt%

Preferred stock

Common equity (retained earnings)

Weighted average cost of capital %