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W2. What is the Weighted Average Cost of Capital, given (5 points); Capital Structure: Debt: 20% Preferred Equity: 10% Common equity: 70% Interest rate on

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W2. What is the Weighted Average Cost of Capital, given (5 points); Capital Structure: Debt: 20% Preferred Equity: 10% Common equity: 70% Interest rate on debt: 396 Tax Rate: 30% Preferred Dividend: 52 Price of Preferred Stock: $50 Market return: 11% Risk-free rate of return: 1% Common stock beta: 0.9

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