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view previous attempt Percent of capital structure: Debt Preferred stock Common equity Additional information: Bond coupon rate Bond yield Dividend, expected common Dividend, preferred Price,

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view previous attempt Percent of capital structure: Debt Preferred stock Common equity Additional information: Bond coupon rate Bond yield Dividend, expected common Dividend, preferred Price, common Price, preferred Flotation cost, preferred Corporate growth rate Corporate tax rate 4% 35% Calculate the weighted average cost of capital for Genex Corporation. Line up the calculations in the order shown in Table 11-1. (Do not round your intermediate calculations and round your final answers to 2 decimal places.) Weighted Cost Debt (Kd) 1.37 % Preferred stock (Kp) 1.39 Common equity (Ke) 6.78 Weighted average cost of capital (Kg) 9.54% 30% 15 55 9% 7% $5.00 $12.00 $60.00 $136.00 $6.20 Table 11-1 Cost of capital-Baker Corporation Debt Kd Preferred stock Kp Common equity (retained earnings) Ke Ka Weighted average cost of capital Cost (after tax) Weights Weighted Cost 6.55% 30% 1.97% 10.94 10 1.09 12.00 60 7.20 10.26%

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