Question
Given the following information: Percent of capital structure: Debt 20 % Preferred stock 10 Common equity 70 Additional information: Bond coupon rate 12% Bond yield
Given the following information: Percent of capital structure: Debt 20 % Preferred stock 10 Common equity 70 Additional information: Bond coupon rate 12% Bond yield to maturity 10% Dividend, expected common $ 8.00 Dividend, preferred $ 15.00 Price, common $ 75.00 Price, preferred $ 142.00 Flotation cost, preferred $ 3.20 Growth rate 8% Corporate tax rate 35% 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.)
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