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Kindly solve using Excel Given the following information: Percent of capital structure: Debt 30 %...
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.)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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$ 60000
Equity
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The firm sold 50 year; $ 1000 face value, 5% bonds 10 years ago.
These bonds trade at $ 930. You expect the yield on these bonds to
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Given the following information:
Percent of capital structure:
Preferred stock
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Common equity (retained earnings)
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Debt
30
Additional information:
Corporate tax rate
40
%
Dividend, preferred
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Dividend, expected common
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Bond yield
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Price, common
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Given the following information:
Percent of capital structure:
Preferred stock
20
%
Common equity (retained earnings)
40
Debt
40
Additional information:
Corporate tax rate
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%
Dividend, preferred
$
8.50
Dividend, expected common
$
2.50
Price, preferred
$
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Growth rate
7
%
Bond yield
9.5
%
Flotation cost, preferred
$
3.60
Price, common
$
75.00
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