Organic Produce Corporation has 9 million shares of common s…
Organic Produce Corporation has 9 million shares of common stock outstanding, 650,000 shares of 8% preferred stock outstanding (par value of $100), and 210,000 of 9.5% semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $75.25 per share and has a beta of 1.57, the preferred stock currently sells for $112.98 per share, and the bonds have 25 years to maturity and sell for 96.7% of par. The market risk premium is 5.3%, T-bonds are yielding 4.2%, and the firm’s tax rate is 31%. What is the firm’s weighted average cost of capital? Do not round calculations in intermediate steps. Round your answer to two decimal places and express in percentage form.