Calculate weighted average cost

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Reference no: EM131872661

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

Reference no: EM131872661

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