Given the following information, calculate the weighted average cost for the Han Corp.
Question # 00085736
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Updated on: 07/27/2015 08:02 AM Due on: 07/27/2015
Given the following information, calculate the weighted average cost for the Han Corp.
Percent of capital structure:
Preferred stock 10%
Common equity 60%
Debt 30%
Additional information:
Corporate tax rate 34%
Dividend, preferred $9.00
Dividend, expected common $3.50
Price, preferred $102.00
Growth rate 6%
Bond yield 10%
Flotation cost, preferred $3.20
Price, common $70.00
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Solution: Given the following information, calculate the weighted average cost for the Han Corp.