Given the following information, calculate the weighted average cost of capital for Hadley Corporation. Line up the calculations in the order shown in Table 11-1.

Percent of capital structure:
Preferred stock .......................................10%
Common equity ...... . .. .. .. ........ .. . .. . .60
Debt ........................... ............................30
Additional information:
Corporate tax rate ......................... ........34%
Dividend, preferred.............................$9.00
Dividend, expected common ....... .. . .$3.50
Price, preferred .................... .. ... . .$102.00
Corporate growth rate .... . . ....... .. .. .. . .6%
Bond yield ....................... . ... . ........... . .7%
Flotation cost, preferred ........... .. . .$    3.20
Price, common ..................................$70.00

Table 11.1

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Cost Weighted (after tax) Weights cost 1.97% 1.09 6.55% к, 10.94 30% 10 Debt.. Preferred stock. Common equity (retained earnings) Weighted average cost of capital ... к 12.00 к. к, 60 7.20 10.26%