Given the following information:

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	$	120.00
Flotation cost, preferred	$	3.80
Growth rate		8%
Corporate tax rate		40%

Calculate the Hamilton Corp.'s weighted cost of each source of capital and the weighted average cost of capital. (Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.)
  

Debt __________ %

Prefereed stock ________

common equity ________

Weighted average cost of capital % _________

Answer rating: 100% (QA)

To calculate the weighted cost of each source of capital and the weighted average cost of capital WA... View the full answer