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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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