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8. Given the following information, calculate the weighted average cost of capital for Hamilton Corp Percent of capital structure: (20 points) 30% Debt. Preferred stock.......

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8. Given the following information, calculate the weighted average cost of capital for Hamilton Corp Percent of capital structure: (20 points) 30% Debt. Preferred stock....... Common equity...... 50 Additional information: 11% 9% Bond coupon rate........ Bond yield to maturity ............. Dividend, expected common....... Dividend, preferred ...... Price, common........... Price, preferred ....... Flotation cost, preferred Growth rate.... Corporate tax rate..... $ 5.00 $ 12.00 $ 60.00 $106.00 $ 4.50 6% 35% Cost (aftertax) Weighted Cost Weights % % Debt (ka) Preferred stock (K) Common equity (K) (retained earnings) Weighted average cost of capital (K)

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