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Instrument Weight Rate Adjusted Rate Weighted Rate (Cost) Common Stock _ Preferred Stock _ Line of Credit _ Mortgage _ Total Weighted Average Cost of

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%

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