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You are on the financial staff of Puddy Enterprises and you have collected the following data: The YTM on the company's outstanding bonds is 8.25%,
You are on the financial staff of Puddy Enterprises and you have collected the following data: The YTM on the company's outstanding bonds is 8.25%, its tax rate is 35%, the last dividend paid was $0.95 a share, the dividend is expected to grow at a constant rate of 6% a year, the price of the stock is $19.00 per share the flotation cost for selling new shares is 12% and the target capital structure is 45% debt and 55% common equity. What is Puddy's WACC, assuming it must issue new stock to finance its capital budget
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