AAA Mining Company needs to determine its cost of capital for capital budgetin

AAA Mining Company needs to determine its cost of capital for capital budgeting purposes. The first has the following information:

Market Price of Outstanding Bonds: $940.00

Coupon Rate: 8.25%

Maturity Value of the Bonds: $1000.00

Years to Maturity: 12

Corporate Tax Rate: 40%

Market Value of Outstanding Preferred Stock: $57.25

Par Value: $100.00

Dividend Rate (Taken on Par): 6%

Market Price of Common Stock: $72.00

Projected Common Stock Dividend: $5.00

Expected Dividend Growth Rate: 6%

Net Proceeds/Share of Sale of New Stock: $66.50

Current Capital structure based on book values appears below:

Bonds: $2500000

Preferred Stock: $1500000

Common Stock ($50 par): $3700000

Retained Earnings: $2300000

Total Capital: $10000000

Calculate the weighted average cost of capital for AAA Mining based on market value weights.