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Calculate the Hamilton Corp.'s weighted cost of each source of capital and the weighted average cost of capital Given the following information: Percent of capital
Calculate the Hamilton Corp.'s weighted cost of each source of capital and the weighted average cost of capital
Given the following information:
Percent of capital structure:
Preferred stock10%Common equity60Debt30
Additional information:
Corporate tax rate34%Dividend, preferred$9.00Dividend, expected common$3.50Price, preferred$102.00Growth rate6%Bond yield10%Flotation cost, preferred$3.20Price, common$70.00
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