2. Given the following information, calculate the weighted average cost of capital for Hamilton Corp....

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Finance

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2. Given the following information, calculate the weighted average cost of capital for Hamilton Corp. Capital Structure: Debt Preferred Stock Common Stock 25% 20% 55% Additional Information: Bond coupon rate 13% Price of the bond 1,200 Years of maturity 15 Common stock dividend (Expected) $2.50 Preferred stock dividend $10.00 Common stock price $85 Preferred stock price $105 Flotation Cost $3.80 Growth rate 7% Tax rate 35%

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