(TCO 4) 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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