The firm's preferred stock pays a quarterly dividend of $1.00, and the stock sells for $60. Flotation costs of preferred stock was 10% of the stock value.

The firm's common stock is selling for $70. The dividend paid was $3.20. Dividends are expected to grow at the same rate of last years:

Div 2022 $3.20

Div 2021 $2.99

Div 2020 $2.80

If the firm issue new stocks, an 8% of the selling price will be charged as selling costs.

Bonds yield to maturity is 16% The firm marginal tax rate is 30%

Calculate the Marginal Average Cost of Capital if new common stocks are issued and the optimal capital structure is 50% debt, 20% Preferred Stocks and 30% Common equity

PRESENT YOUR ANSWER IN PERCENT ROUNDED WITH ZERO DECIMAL PLACES

DON'T MAKE INTERMEDIATE CALCULATIONS. DON'T WRITE THE PERCENTAGE SIGN

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