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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.) Percent of capital structure: Debt 55% Preferred stock 5 Common equity Additional information: Bond coupon rate Bond yield Bond flotation cost Dividend, expected common Price, common Dividend, preferred 5% Flotation cost, preferred 3% 4% Flotation cost, common Corporate growth rate Corporate tax rate 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 % c. This part of the question is not part of your Connect assignment. 40 8.5% 7% 2% $1.50 $30.00
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