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Given the following information: Percent of capital structure: Debt 35 % Preferred stock 20 Common equity (retained earnings) 45 Additional information: Bond coupon rate 15%

Given the following information:

Percent of capital structure:

Debt 35 %
Preferred stock 20
Common equity (retained earnings) 45

Additional information:

Bond coupon rate 15%
Bond yield to maturity 12%
Dividend, expected common $ 2.00
Dividend, preferred $ 9.00
Price, common $ 45.00
Price, preferred $ 148.00
Flotation cost, preferred $ 6.20
Growth rate 6%
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.)

Weighted Cost
Debt %
Preferred stock
Common equity (retained earnings)
Weighted average cost of capital %

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