Given the following information, calculate the weighted average cost for the Han Corp.

Question
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