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

Finance Jan 13, 2022

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)