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TCO 4) Given the following information, calculate the weighted average cost for the Han Corp. Percent of capital structure: Preferred stock10% Common equity60% Debt30% Additional
TCO 4) Given the following information, calculate the weighted average cost for the Han Corp.
Percent of capital structure:
Preferred stock10%
Common equity60%
Debt30%
Additional information:
Corporate tax rate34%
Dividend, preferred$9.00
Dividend, expected common$3.50
Price, preferred$102.00
Growth rate6%
Bond yield10%
Flotation cost, preferred$3.20
Price, common$70.00
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