Given the following information: Percent of capital structure:

Preferred stock	20	%
Common equity	35
Debt	45

Additional information:

Corporate tax rate		40	%
Dividend, preferred	$	5.00
Dividend, expected common	$	2.50
Price, preferred	$	97.00
Growth rate		3	%
Bond yield		12	%
Flotation cost, preferred	$	9.20
Price, common	$	79.00

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.)

Debt Weighted Cost

Preferred stock

Common Equity

Weighted average cost of capital