# Given the following information

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Given the following information
(TCO 4) Given the following information, calculate the weighted average cost for the Han Corp.

SKU: Given the following information Categories: ,

## Given the following information

Given the following information

BUSN 379 Final Exam A+

 (TCO 4) Given the following information, calculate the weighted average cost for the Han Corp. Percent of capital structure: Preferred stock                                                      15% Common equity                                                     60% Debt                                                                      25%Additional information: Corporate tax rate                                                  34% Dividend, preferred                                                \$9.50 Dividend, expected common                                  \$1.50 Price, preferred                                                      \$100.00 Growth rate                                                            9% Bond yield                                                             6% Price, common                                                               \$75.00 (Points : 40)

WACC = ((E/V) * Re) +((E/V) * Rp) + [((D/V) * Rd)*(1-T)]

Where:

• E = Market value of the company’s equity, preferred stock or debt
• V = Total Market Value of the company (E + D); therefore…