Question
Given the following information. Percent of capital structure: Debt 40 % Preferred stock 15 Common equity 45 Additional information: Corporate tax rate 35 % Dividend,
Given the following information. Percent of capital structure: Debt 40 % Preferred stock 15 Common equity 45 Additional information: Corporate tax rate 35 % Dividend, preferred $10.00 Dividend, expected common $5.50 Price, preferred $98.00 Corporate growth rate 10 % Bond yield 11 % Flotation cost, preferred $8.20 Price, common $82.00 Calculate the weighted average cost of capital for Hadley Corporation. Line up the calculations in the order shown in Table 111. (Round intermediate calculations to 2 decimal places. Round the final answers to 2 decimal places.) Weighted Cost Debt (Kd) % Preferred stock (Kp) Common equity (Ke) Weighted average cost of capital (Ka) %
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