Using the following information about Drew Co. Inc. and the market (SPY), what is the Weighted Average Cost of Capital for DCI? Please answer as a % without the % sign. Drew Co. Inc DCI Stock Price #shares Outstanding Corporate Tax Rate = Risk-Free Rate 80.80 250,000 40.00% 3.00% Mkt Price (Quoted % of Par) Par Value 50.00 70.00 10 yr Zero Coupon Bond 20 Yr (semi-annual,) Bond Coupon Rate Preferred Shares Pref. Payment Rate 10,000,000 10,000,000 5.00% 10,000,000 12.00% 131.00 Stock Returns DCI SPY Year 1 WN - 2 16.0% 15.0% 1.0% 6.0% 11.0% 10.0% 4.0% 3.0% 3 Answer: Using the following information about Drew Co. Inc. and the market (SPY), what is the Weighted Average Cost of Capital for DCI? Please answer as a % without the % sign. Drew Co. Inc DCI Stock Price #shares Outstanding Corporate Tax Rate = Risk-Free Rate 80.80 250,000 40.00% 3.00% Mkt Price (Quoted % of Par) Par Value 50.00 70.00 10 yr Zero Coupon Bond 20 Yr (semi-annual,) Bond Coupon Rate Preferred Shares Pref. Payment Rate 10,000,000 10,000,000 5.00% 10,000,000 12.00% 131.00 Stock Returns DCI SPY Year 1 WN - 2 16.0% 15.0% 1.0% 6.0% 11.0% 10.0% 4.0% 3.0% 3