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You have been provided with the following information about Compary Z which pays taxes at 35% : Common shares - There are 4 million shares outstanding. The current market price of the shares is $45 each. The shares paid a dividend of $2.50 per share last year and investment analysists believe the dividends should grow at an average annual rate of 5% for the foreseeable future. Flotation costs are estimated at 7.5% Preference shares - There are 2 million preference shares outstanding. The shares carry a stated dividend of $1.50 per share and have a current market price of $25 pet shate. Flotation costs are estimated at 6.5% Bonds - the compary has 50,000 bonds with a face value of $100 each and a coupon rate of 5% with interest pad semi-annoatly, The current price of the bonds $98, and they have 14 years to maturity. Flotation costs for debt is estimated at 5.5% Required: Caiculate the company's weighted average cost of capital, (Use 4 decimal places when calculating rates) You have been provided with the following information about Compary Z which pays taxes at 35% : Common shares - There are 4 million shares outstanding. The current market price of the shares is $45 each. The shares paid a dividend of $2.50 per share last year and investment analysists believe the dividends should grow at an average annual rate of 5% for the foreseeable future. Flotation costs are estimated at 7.5% Preference shares - There are 2 million preference shares outstanding. The shares carry a stated dividend of $1.50 per share and have a current market price of $25 pet shate. Flotation costs are estimated at 6.5% Bonds - the compary has 50,000 bonds with a face value of $100 each and a coupon rate of 5% with interest pad semi-annoatly, The current price of the bonds $98, and they have 14 years to maturity. Flotation costs for debt is estimated at 5.5% Required: Caiculate the company's weighted average cost of capital, (Use 4 decimal places when calculating rates)