Given the following information, calculate the weighted average cost for the Ban Corp.  Percent of

capital structure:

Preferred stock                                                     10%

Common equity                                                    70%

Debt                                                                     20%

Additional information:

Corporate tax rate                                                 34%

Dividend, preferred                                               $8.00

Dividend, expected common                                 $4.00

Price, preferred                                                     $80.00

Growth rate                                                           5%

Bond yield                                                            7%

Price, common                                                        $80.00

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