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Given the following information, calculate the weighted average cost of capital for Digital Processing Inc

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Given the following information, calculate the weighted average cost of capital for Digital Processing Inc. Percent of capital structure: Preferred stock 20% Common equity 40% Debt 40% Additional information: Cost of Debt 7.22% Cost of Common stock 10.33% Cost of Preferred stock 8.38%

You are required to calculate weighted average cost of capital (WACC)! (10 marks)