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Problem 11-25 Given the following information. Percent of capital structure: Debt Preferred stock Common equity Additional information: 40% 10 50 Corporate tax rate 348
Problem 11-25 Given the following information. Percent of capital structure: Debt Preferred stock Common equity Additional information: 40% 10 50 Corporate tax rate 348 Dividend, preferred. $9.00 Dividend, expected common $4.50 Price, preferred $105.00 Corporate growth rate 78 Bond yield 78 Flotation cost, preferred Price, common $5.50 $92.00 Calculate the weighted average cost of capital for Hadley Corporation. Line up the calculations in the order shown in Table 11-1. (Round intermediate calculations to 2 decimal places. Round the final answers to 2 decimal places.) Debt (Kd) Preferred stock (Kp) Common equity (Ke) Weighted average cost of capital (Ka) Weighted Cost
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