Mead Plastics data regarding cost of capital is as follows: Bonds Yield to Maturity is 13% Preferred Stock value is $70 Common Stock value is $50 Dividends in Preferred Stocks are $7.15 Last year dividends in Common Stocks was $2.00 Flotation Costs in Preferred Stocks are $6 per share Flotation Costs in Common Stocks are 10% of value Growth rate in dividends is 4% Tax rate is 25% Optimal Capital Structure Debt = 25% Preferred Stock = 30% Common Equity = 45% Calculate the Weighted Average Cost of Capital.

1. Mead Plastics data regarding cost of capital is as follows:
Bonds Yield to Maturity is 13%
Preferred Stock value is $70
Common Stock value is $50
Dividends in Preferred Stocks are $7.15
Last year dividends in Common Stocks was $2.00
Flotation Costs in Preferred Stocks are $6 per share
Flotation Costs in Common Stocks are 10% of value
Growth rate in dividends is 4%
Tax rate is 25%
Optimal Capital Structure
Debt = 25%
Preferred Stock = 30%
Common Equity = 45%
Calculate the Weighted Average Cost of Capital