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