Ziedow Corporation has 2 11 milion shares of common stock outstanding with a book value per share of 755 with a recent divided of 45. The firm's capital so includes 2000 shares of 4.2% preferred stock outstanding with a par value of 100 and the firms debt include 2250 6.5 percent quarterly bonds outstanding with 35 years matunty issued five years ago. The current trading price of the pretemed stock and bonds are 102% of its par value and comomon stock trades for 255 with a constant growth rate of 16%. The bets of the stock is 1.13 and the market risk premium 7% Calculate the after lax Weighted Avergae Cost of Capital of the firm assuming a tax rate of 30% (Must show the steps of calculation)
