USING EXCEL

The capital structure for the Black Hills Surgery Center is provided below.The company plans to maintain its debt structure in the future

If the firm has a 5.5 percent after tax cost of debt, a 13.5% cost of preferred stock and an 18 percent cost of common stock, what is the firm's weighted average cost of capital (WACC)?

Capital Structure (in K's)

Bonds $1,083

Preferred Stock $268

Common Stock $3,681

$5,032