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Question 1 (26 marks) Given the following information, calculate the weighted average cost of capital for Puppet Corporation. Assume the funds are internally generated. Percent

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Question 1 (26 marks) 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 Common equity Preferred stock 59% 35% 6% Additional information: Bond coupon rate Bond yield Bond flotation coat Dividend, common (just paid) Price, common Price, preferred Dividend, preferred Flotation cost, preferred Flotation cost, common Corporate growth rate Corporate tax rate A A A 7% 5% 3% 1.09 30.00 35.00 9% 1.97 4% 6% 44% $

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