Reference no: EM132763536

Question - Calculate weighted average cost of capital for Puppet Corporation. Assume the funds are internally generated.

Percent of capital structure:

Debt - 54%

Common Equity - 32%

Preferred stock - 14%

Additional information:

Bond coupon rate - 9%

Bond yield - 9%

Bond flotation coat - 1%

Dividend, common (just paid) - $1.30

Pride, common - $ 37

Dividend, preferred - 8%

Price. preferred - $37

Flotation cost, preferred - $1.79

Flotation cost, common - 8%

Corporate growth rate - 10%

Corporate tax rate - 35%