The Wendell Co. uses 40 % common stock, 30 % preferred stock, and 30 % debt as their capital structure. The flotation costs are 5 % for debt, 9 % for preferred stock, and 8 % for common stock. The corporate tax rate is 35 %. What is the weighted average flotation cost?

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The Answer of The Wendell Co. uses 40 % common stock, 30 % preferred stock, and 30 % debt as their capital structure. The flotation costs are 5 % for debt, 9 % for preferred stock, and 8 % for common stock. The corporate tax rate is 35 %. What is the weighted average flotation cost?