The capital structure of Wilken Corporation is given below. Calculate the weighted average cost of capital (WACC). Debt 35% Preferred stock 15%...

The capital structure of Wilken Corporation is given below.

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Calculate the weighted average cost of capital (WACC).

Debt

35%

Preferred stock

15%

Common equity

50%

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Additional details are as follows:

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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%

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