The firm's preferred stock pays an annual dividend of $5.30, 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 $75. The dividend paid was $3. A 7.25% growth rate in dividends is expected for the common stock. If the firm issue new stocks a 8% of the selling price will be charged as selling costs.

Bonds yield to maturity is 10% 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, 25% Preferred Stocks and 25% Common equity

PRESENT YOUR ANSWER IN PERCENT ROUNDED WITH ZERO DECIMAL PLACES

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

EX 17% WRITE JUST 17