The following relates to Ajax Corporation:
Capital Structure:
40% Common equity
15% Preferred stock
45% Debt
Additional Information:
Corporate tax rate = 34%
Preferred stock dividend = $8.50
Expected common share dividend = $2.50
Expected constant growth rate = 7.00%
Bond coupon rate = 11.00%
Bond yield = 9.50%
Price of preferred stock = $105.00
Price of common stock = $75.00
What is the weighted-average cost of capital for Ajax Corporation?