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In: Finance
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 2 years agoRelated Solutions
Solve using excel: A. Given the following information, calculate the debt coverage ratio of this commercial...
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$100,000, Loan amount: $1,000,000, Purchase price: $1,300,000
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Dividend, expected common $ 2.00 Dividend, preferred $ 9.00 Price,
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You are provided the following information: Capital Structure: Debt  
You are provided the following information:
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Debt
$ 60000
Equity
$ 180000
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
be a good proxy for the cost of issuing new bonds.
The shares trade at $ 20; the growth rate is 6%. Dividends paid
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The firm has a 30% tax rate....
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structure is 30 percent debt, 10 percent preferred stock, and 60
percent common equity. Its bonds have an 8 percent coupon, paid
quarterly, a current maturity of 15 years, and sell for $895. The
firm could sell, at par, $100 preferred stock which pays $10 annual
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Given the following information: Percent of capital structure: Preferred stock 20 % Common equity (retained earnings)...
Given the following information:
Percent of capital structure:
Preferred stock
20
%
Common equity (retained earnings)
50
Debt
30
Additional information:
Corporate tax rate
40
%
Dividend, preferred
$
7.00
Dividend, expected common
$
3.50
Price, preferred
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98.00
Growth rate
8
%
Bond yield
10
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Flotation cost, preferred
$
3.40
Price, common
$
86.00
Calculate the weighted average cost of capital for Digital
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Input your answers as a percent rounded to...
Given the following information: Percent of capital structure: Preferred stock 20 % Common equity (retained earnings)...
Given the following information:
Percent of capital structure:
Preferred stock
20
%
Common equity (retained earnings)
40
Debt
40
Additional information:
Corporate tax rate
24
%
Dividend, preferred
$
8.50
Dividend, expected common
$
2.50
Price, preferred
$
105.00
Growth rate
7
%
Bond yield
9.5
%
Flotation cost, preferred
$
3.60
Price, common
$
75.00
Calculate the weighted average cost of capital for Digital
Processing Inc. (Do not round intermediate calculations.
Input your answers as a percent rounded...
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information: beta of 1.1, risk free treasury rate of 3% and market
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