Nipigon Manufacturing has a cost of debt of 9 %, a cost of equity of 13%, and a cost of preferred stock of 10%. Nipigon currently has 100,000 shares of common stock outstanding at a market price of $25 per share. There are 49,000 shares of preferred stock outstanding at a market price of $40 a share. The bond issue has a face value of $800,000 and a market quote of 106. The companys tax rate is 40%.

Required: Calculate the weighted average cost of capital for Nipigon. You must show and clearly label all calculations to receive full marks. You can enter them in the space below or upload them to the drop box in the Assignments Area.