Given the following information, calculate the weighted average cost of capital for Hamilton Corp. Line up the calculations in the order shown in Table.
Percent of capital structure:
Debt ................ 35%
Preferred stock ............ 20
Common equity ............. 45
Additional information:
Bond coupon rate ............ 11%
Bond yield to maturity .......... 9%
Dividend, expected common ....... $ 5.00
Dividend, preferred .......... $ 12.00
Price, common ............ $ 60.00
Price, preferred ............ $106.00
Flotation cost, preferred ......... $ 4.50
Growth rate .............. 6%
Corporate tax rate ........... 35%