Problem 11-23 Weighted average cost of capital. The answers listed are incorrect.

Problem 11-23 Weighted average cost of capital [LO11-1] Given the following information Percent of capital structure Preferred stock Common equity Debt 20% 40 40 Additional information: 34% Corporate tax rate Dividend, preferred Dividend, expected common Price, preferred Growth rate Bond yield Flotation cost, preferred Price, common $ 8.50 $ 2.50 105.00 9510 $ 3.60 $75.00 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 6.27: % Debt Preferred stock Common equity Weighted average cost of capital 8.38 10.33 24.98 %