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Funds internally generated Given the following information, calculate the weighted average cost of capital for Puppet Corporation. Assume the funds are internally generated. Percent of

Funds internally generated

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Given the following information, calculate the weighted average cost of capital for Puppet Corporation. Assume the funds are internally generated. Percent of capital structure: Debt 59% Common equity 35% Preferred stock 6% Additional information: Bond coupon rate 7% Bond yield 5% Bond flotation coat 3% Dividend, common (just paid) 1.09 Price, common 30.00 Price, preferred 35.00 Dividend, preferred 9% Flotation cost, preferred 1.97 Flotation cost, common 4% Corporate growth rate 6% Corporate tax rate 44%

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