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Given the following information: Percent of capital structure: Debt 10 % Preferred stock 5 Common equity 85 Additional information: Bond coupon rate 13% Bond yield
Given the following information:
Percent of capital structure:
Debt | 10 | % |
Preferred stock | 5 | |
Common equity | 85 | |
Additional information:
Bond coupon rate | 13% | ||
Bond yield to maturity | 11% | ||
Dividend, expected common | $ | 7.00 | |
Dividend, preferred | $ | 14.00 | |
Price, common | $ | 70.00 | |
Price, preferred | $ | 110.00 | |
Flotation cost, preferred | $ | 2.50 | |
Growth rate | 4% | ||
Corporate tax rate | 30% | ||
Calculate the Hamilton Corp.'s weighted cost of each source of capital and the weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
Debt ???%
Preferred stock ???
Common Equity ???
Weighted average cost of capital ???%
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