# Question: Given the following information calculate the weighted average cost of

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%

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%

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