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Percent of capital structure: Preferred stock Common equity (retained earnings) Debt 15% 45 40 Additional information: Corporate tax rate Dividend, preferred Dividend, expected common Price,

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Percent of capital structure: Preferred stock Common equity (retained earnings) Debt 15% 45 40 Additional information: Corporate tax rate Dividend, preferred Dividend, expected common Price, preferred Growth rate Bond yield Flotation cost, preferred Price, common 35% $ 8.00 $ 3.50 $105.00 9% 8% $ 10.40 $ 78.00 Calculate the weighted average cost of capital for Digital Processing Inc. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.) Weighted Cost % Debt Preferred stock Common equity (retained earnings) Weighted average cost of capital 0.00%

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