WACC

Given the following information, calculate the weighted average cost for the Ban Corp.

Percent of capital structure:

Preferred stock 10%

Common equity 70%

Debt 20%

Additional information:

Corporate tax rate 34%

Dividend, preferred $8.00

Dividend, expected common $4.00

Price, preferred $80.00

Growth rate 5%

Bond yield 7%

Price, common $80.00 (Points : 40)