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Given the following information. Percent of capital structure: Debt 10 % Preferred stock 50 Common equity 40 Additional information: Corporate tax rate 34 % Dividend,

Given the following information.

Percent of capital structure:
Debt 10 %
Preferred stock 50
Common equity 40
Additional information:
Corporate tax rate 34 %
Dividend, preferred $9.00
Dividend, expected common $4.80
Price, preferred $100.00
Corporate growth rate 10 %
Bond yield 8 %
Flotation cost, preferred $5.40
Price, common $90.00

Calculate the weighted average cost of capital for Hadley Corporation. Line up the calculations in the order shown in Table 111. (Round intermediate calculations to 2 decimal places. Round the final answers to 2 decimal places.)

Weighted Cost
Debt (Kd) %
Preferred stock (Kp)
Common equity (Ke)
Weighted average cost of capital (Ka) %

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