Question no:1 (30 marks) Given the following information, calculate the weighted average cost of capital for Hamilton corporation: Percent of capital structure: Debt Preferred stock- Common equity 30% 15% 55% Additional information: 13% 11% Bd:3 Bd: 10 Bond coupon rate Bond yield to maturity Dividend, expected common- Dividend, preferred Price, common Price, preferred Floation cost, preferred- Growth rate- Corporate tax rate Bd: 50 Bd:98 Bd:5.50 8% -30% b. If there be Bd: 40 million in retained earnings, at what value will the marginal cost of capital go up?. If the floatation cost on common stock is BD: 2, what will be the cost of new common stock? C. Critically evaluate how does the firm decide on the appropriate weights for debt, preferred stock and common stock financing