Instrument Weight Rate Adjusted Rate Weighted Rate (Cost) Common Stock _ Preferred Stock _ Line of Credit _ Mortgage _ Total Weighted Average Cost of Capital : Compute the Weighted Cost of Capital on worksheet above based on the following:

1. Common Stock (CAPM Expected Return - Cost of 10.5%) 1,750,000.00

2. Preferred Stock - Coupon rate - Cost of 7.5% 750,000.00

3. Line of Credit at Bank - Rate of 6.5% 1,000,000.00

4. Commercial Mortgage - Rate of 4.5% 500,000.00

5. Company's tax rate 15%