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Percent of capital structure: Preferred stock Common equity (retained earnings) Debt Additional information: 25% 60 15 Corporate tax rate: 35% Dividend, preferred Dividend, expected

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Percent of capital structure: Preferred stock Common equity (retained earnings) Debt Additional information: 25% 60 15 Corporate tax rate: 35% Dividend, preferred Dividend, expected common $ 12.00 $ 7.50 Price, preferred $ 102.00 Growth rate 7% Bond yield 6% Flotation cost, preferred $ 6.20 Price, common $ 76.00 Calculate the weighted average cost of capital for Digital Processing Incorporated Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places. Debt Preferred stock Common equity (retained earnings) Weighted average cost of capital Weighted Cost 0.00 %

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