Question
Given the following information: Percent of capital structure: Debt 40 % Preferred stock 20 Common equity 40 Additional information: Bond coupon rate 8% Bond yield
Given the following information: Percent of capital structure: Debt 40 % Preferred stock 20 Common equity 40 Additional information: Bond coupon rate 8% Bond yield to maturity 6% Dividend, expected common $ 4.00 Dividend, preferred $ 11.00 Price, common $ 55.00 Price, preferred $ 134.00 Flotation cost, preferred $ 8.20 Growth rate 9% Corporate tax rate 30% 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.)
Debt:
Preferred Stock:
Common Equity:
Weighted Average cost of capital:
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