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Given the following information. Percent of capital structure: Debt 45 % Preferred stock 20 Common equity 35 Additional information: Corporate tax rate 40 % Dividend,
Given the following information.
Percent of capital structure: | |||
Debt | 45 | % | |
Preferred stock | 20 | ||
Common equity | 35 | ||
Additional information: | |||
Corporate tax rate | 40 | % | |
Dividend, preferred | $5.00 | ||
Dividend, expected common | $2.50 | ||
Price, preferred | $97.00 | ||
Corporate growth rate | 3 | % | |
Bond yield | 12 | % | |
Flotation cost, preferred | $9.20 | ||
Price, common | $84.00 | ||
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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