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Given the following information: Percent of capital structure: Debt 30 % Preferred stock 15 Common equity 55 Additional information: Bond coupon rate 9% Bond yield
Given the following information: Percent of capital structure:
Debt 30 % Preferred stock 15 Common equity 55
Additional information: Bond coupon rate 9% Bond yield to maturity 8% Dividend, expected common $ 5.00 Dividend, preferred $ 12.00 Price, common $ 60.00 Price, preferred $ 136.00 Flotation cost, preferred $ 6.20 Growth rate 4% Corporate tax rate 35%
Calculate the Hamilton Corp.'s weighted cost of each source of capital and the weighted average cost of capital
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