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Business, 30.04.2021 15:20 destineenikole175

Given the following information: Percent of capital structure: Preferred stock 10 % Common equity (retained earnings) 40 Debt 50 Additional information: Corporate tax rate 34 % Dividend, preferred $ 7.00 Dividend, expected common $ 2.50 Price, preferred $ 104.00 Growth rate 8 % Bond yield 9 % Flotation cost, preferred $ 9.40 Price, common $ 76.00 Calculate the weighted average cost of capital for Digital Processing Inc.

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