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Given the following information, calculate the weighted average cost of capital for Puppet Corporation. (Round intermediate calculations to 2 decimal places. Round the final answers
Given the following information, calculate the weighted average cost of capital for Puppet Corporation. (Round intermediate calculations to 2 decimal places. Round the final answers to 2 decimal places.) 35% 50 15 Percent of capital structure: Debt Preferred stock Common equity Additional information: Bond coupon rate Bond yield Bond flotation cost Dividend, expected common Price, common Dividend, preferred Flotation cost, preferred Flotation cost, common Corporate growth rate Corporate tax rate 8.5% 8.25% 2% $1.50 $30.00 5% 3% 4.00% 6% 35% a. Calculate the cost of capital assuming use of internally generated funds. Internal capital cost % b. Calculate the cost of capital assuming use of externally generated funds. External capital cost %
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