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Given the following information: Percent of capital structure: Debt 20% Preferred stock 10 Common equity (retained earnings) 70 Additional information: Bond coupon rate 8% Bond
Given the following information: Percent of capital structure: Debt 20% Preferred stock 10 Common equity (retained earnings) 70 Additional information: Bond coupon rate 8% Bond yield to maturity 6% Dividend, expected common $ 2.00 Dividend, preferred $ 9.00 Price, common $ 45.00 Price, preferred $ 114.00 Flotation cost, preferred $ 7.50 Growth rate 2% Corporate tax rate 40% Calculate the Hamilton Corporation's weighted cost of each source of capital and the weighted average cost of capital. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places
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