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