(a) Given the following information, calculate the weighted average cost of capital for Hamilton Corp.

Percent of capital structure:

Debt........................... 30%

Preferred stock........... 15

Common equity......... 55

Additional information:

Bond coupon rate.............................. 13%

Bond yield to maturity...................... 11%

Dividend, expected common............. $ 3.00

Dividend, preferred........................... $10.00

Price, common................................... $50.00

Price, preferred.................................. $98.00

Flotation cost, preferred.................... $ 5.50

Growth rate........................................ 8%

Corporate tax rate.............................. 30%