The capital structure of Wilken Corporation is given below. Calculate the weighted average cost of

The capital structure of Wilken Corporation is given below. Calculate the weighted average cost of

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 The capital structure of Wilken Corporation is given below.

Calculate the weighted average cost of capital (WACC).

Debt      35%

Preferred stock   15%

Common equity  50%

Additional details are as follows:

Bond yield to maturity     10%

Dividend of preferred stock    $9.50

Price of preferred stock    $100

Flotation cost of preferred stock    $5

Dividend of common stock     $2.00

Price of common stock    $40

Growth rate of common stock 12%

Corporate tax rate      30%

12.45%
18.35%
35.75%
10.65%
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