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%