Q) The JV Company was recently formed to manufacture a new product it has the following capital structure in market value terms

Long term liabilities $ 6

Preferred stock $ 3

Common stock $ 8

Total $ 17

The company marginal tax rate of 40 % with interest expense per month .001 Dividend rate on preferred is 9% with per value of 1000 flotation cost is 10% on per value , dividend rate on common stock is 15% with per value of 10 Market value of share is 15 with growth rate 10% .

a) Required:

Compute the firm present weighted average cost of capital?