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Given the following information: Percent of capital structure: Debt 30 % Preferred stock 15 Common equity (retained earnings) 55 Additional information: Bond coupon rate 10%

Given the following information: Percent of capital structure: Debt 30 % Preferred stock 15 Common equity (retained earnings) 55 Additional information: Bond coupon rate 10% Bond yield to maturity 8% Dividend, expected common $ 4.00 Dividend, preferred $ 11.00 Price, common $ 55.00 Price, preferred $ 118.00 Flotation cost, preferred $ 2.80 Growth rate 7% 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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