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	45%
Preferred stock	30
Common equity	25
Additional information:
Bond coupon rate	8.5%
Bond yield	7.50%
Bond flotation cost	2%
Dividend, expected common	$1.50
Price, common	$30.00
Dividend, preferred	7%
Flotation cost, preferred	3%
Flotation cost, common	4.00%
Corporate growth rate	5%
Corporate tax rate	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. Not suitable for Connect