Question

Given the following information: Percent of capital structure:    Debt 35 % Preferred stock 20 Common...

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 % _________

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