Given the following information:

Percent of capital structure:

Preferred stock	20	%
Common equity	40
Debt	40

Additional information

Corporate tax rate		34	%
Dividend, preferred	$	8.50
Dividend, expected common	$	2.50
Price, preferred	$	105.00
Growth rate		7	%
Bond yield		9.5	%
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	0.03	%
Preferred stock	0.02
Common equity	0.04
Weighted average cost of capital	0.09	%