Question: ABC Inc. has a capital structure shown below. Liabilities $87,395,716 Stockholders' Equity $67,558,300 ABC Inc. will raise additional capital for new projects this year, in

ABC Inc. has a capital structure shown below.

Liabilities $87,395,716

Stockholders' Equity $67,558,300 ABC

Inc. will raise additional capital for new projects this year, in the amount of $5,462,247. Assuming the current capital structure is ideal, how much will the company have to raise in equity?

The earnings, dividends, and stock prices of ABC Inc. are expected to grow at 3.86% per year in the future. ABC Inc.'s common stock sells for $27 per share, and its last dividend was $1.68.

The companys 4.8% coupon rate, semiannual payment, $1,000.00 par value bond that matures in 19 years and currently sells at par. The companys federal-plus-state tax rate is 27%.

What is the weighted average cost of capital for ABC Inc.? Do not round any intermediate calculations. Report it as a whole number and round your answer to two decimal points. For example, if your answer is 17.857321%, you would type in 17.86 as your answer.

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