Given the following information:

Percent of capital structure:

Preferred stock30%

Common equity (retained earnings)50

Debt20

Additional information:

Corporate tax rate40%

Dividend, preferred$8.00

Dividend, expected common$3.50

Price, preferred$103.00

Growth rate8%

Bond yield9%

Flotation cost, preferred$7.20

Price, common$78.00

Calculate the weighted average cost of capital for Digital Processing Inc

Debt:

Preferred Stock:

Common equity(retained earnings):

Weighted Average cost of capital: