Puppet Corporation Capital Structure
Debt= wd (weight)			55%
Preferred Stock = wp			5%
Common Stock = we			40%

Puppet Corporation Additional Information
Bond Coupon Rate			8.50%
Bond Yield			7%
Flotation Cost Bond			2%
Expected Dividend Common			1.5
Price Common			30
Dividend Yield Preferred			5%
Flotation Cost Preferred			3%
Flotation Cost Common			4%
Corporate Growth Rate			6%
Corporate Tax Rate			35%

A) Calculate the cost of capital assuming the use of internally generated funds (Means retained earnings). Vs Externally generated funds which would be issuing common stock.

B) Calculate the cost of capital assuming the use of externally generated funds.