Valvano Publishing Company is trying to calculate its cost of capital for use in a capital budgeting decision, Mr Washburn, the vice president of finance, nas given you the following information and asked you to compute the weighted average cost or capital The company currently has outstanding a bond with an 11 percent coupon rate and a convertible bond with a 21 percent rate The Tim has been informed by its investment dealer, Dean, Smith, and Company that bonds of equal risk and credit rating are now selling to yield 13 percent. The common stock has a price of $45 and an expected dividend (1) of $2.52 per share The n'shistoneal growth rate of earnings and dividends per share has been 14.5 percent but security analysts on Bay Street expect this growth to slow to 11 percent in the future. The preferred stock is seling at $50 per share and carries a dividend of $5,50 per share the corporate tax rate 15 34 percent The Rotation costs are 3 percent of the selling price for preferred stock The optimum capital structure for the nom seems to be 35 percent vedt, 10 percent preferred stock, and 55 percent common equity in the form or retained earnings .. Compute the cost of capital for the individual components in the capital structure. (round the final answers to 2 decimal places.) Com Deut referred stock wity D. Catculate the weighted average cost of capital (Round internetifotoculations to 2 decimal places. Round the final answers to 2 decimal places) we cost Preferred stoce ( wanted average cost of capital )