Question
Given the following information: Percent of capital structure: Debt 35% Preferred stock 20 Common equity 45 Additional information: Bond coupon rate 11 % Bond yield
Given the following information:
Percent of capital structure: Debt 35%
Preferred stock 20
Common equity 45
Additional information:
Bond coupon rate 11 %
Bond yield to maturity 9 %
Dividend, expected common $ 5.00
Dividend, preferred $ 12.00
Price, common $ 60.00
Price, preferred $ 106.00
Flotation cost, preferred $ 4.50
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 (Kd) %=
Preferred stock (Kp)=
Common equity (Ke)=
Weighted average cost of capital (Ka) %=
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