In: Finance
Kindly solve using Excel
Given the following information:
Percent of capital structure:
Debt | 30 | % |
Preferred stock | 15 | |
Common equity | 55 | |
Additional information:
Bond coupon rate | 13% | ||
Bond yield to maturity | 11% | ||
Dividend, expected common | $ | 3.00 | |
Dividend, preferred | $ | 10.00 | |
Price, common | $ | 50.00 | |
Price, preferred | $ | 98.00 | |
Flotation cost, preferred | $ | 5.50 | |
Growth rate | 8% | ||
Corporate tax rate | 30% | ||
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.)