AMNI Corporation has supplied the following information to you.
We pay our lenders 5 percent per year for our short-term borrowings.
We pay our lenders 7 percent per year for our long-term borrowings.
Our preferred stock sells for $39 per share and pays a $3.00 dividend.
Our common stock sells for $22 per share and pays a $1.10 dividend.
Our dividend has grown from $0.70 five years ago.
Our firm has a 30 percent tax rate.
In addition the firm has shared with you the following information regarding its capital structure.
type of capital amount of capital
short term debt $125
long term debt $275
preferred stock $50
common stock $300
retained earnings $250
What cost of capital would you use to evaluate a project which offered you after tax cash flows for evaluation?