1. Use the following information to calculate the firm's weighted average cost of capital:

• The dividend for preferred shares is $5, and the current price for preferred stock is $75.
• The rate of return on long-term debt is 6%, the rate of return on short-term debt is 5%, and the marginal tax rate is 35%.
• The market risk premium is 5%, the risk-free rate is 3%, and the firm has a beta of 0.9.
• The firm's capital structure is as follows: long-term debt is 25%, short-term debt is 4%, preferred stock is 2%, and common stock is 69%.