Preferred stock Common equity (retained earnings) Debt Additional information: Corporate tax rate Dividend, preferred Dividend, expected common Price, preferred Growth rate Bond yield 35% $ 12.00 $ 7.50 $102.00 Debt Preferred stock Common equity (retained earnings) Weighted average cost of capital 7% 6% Flotation cost, preferred $ 6.20 Price, common $ 76.00 25% 60 15 Calculate the weighted average cost of capital for Digital Processing Inc. (Do not round intermediate calculations answers as a percent rounded to 2 decimal places.) Notice that this problem asks for the weighted costs. These are the unweighted costs times the weights. Like this: cost of debt. Weighted Cost % 0.00 %

Additional information: Calculate the weighted average cost of capital for Digital Processing Inc. (Do not round intermediate calculation answers as a percent rounded to 2 decimal places.) Notice that this problem asks for the weighted costs. These are the unweighted costs times the weights. Like this cost of debt