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Given the following information, Percent of capital structure: Debt 40% Preferred stock 20 Common equity 40 Additional information: Bond coupon rate 12 % Bond yield

Given the following information,

Percent of capital structure:

Debt 40%
Preferred stock 20
Common equity 40

Additional information:

Bond coupon rate 12 %
Bond yield to maturity 10 %
Dividend, expected common $ 6.00
Dividend, preferred $ 13.00
Price, common $ 65.00
Price, preferred $ 108.00
Flotation cost, preferred $ 3.50
Growth rate 5 %
Corporate tax rate 40 %

Calculate the Hamilton Corp.'s weighted cost of each source of capital and the weighted average cost of capital. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "%" sign in your response. Also, remember to multiply by various capital costs by the "percent of capital structure" weights.)

Weighted cost
Debt (Kd) %
Preferred stock (Kp)
Common equity (Ke)
Weighted average cost of capital (Ka) %

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