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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
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) 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 30x 60 10 % 8.5% 8.50% 2% $2.00 $32.00 63 3% 4.50% 45 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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