Finding the WACC given the following information for Bellevue Power Co, find the WACC. Assume the companys

Question:

Finding the WACC given the following information for Bellevue Power Co, find the WACC. Assume the company’s tax rate is 35 percent.

Deb:5,000 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity selling for 92 percent of par; the bonds make semiannual payments.

Common Stock:100,000 shares outstanding, selling for $57 per share; the beta is 1.15.

Preferred stock:13,000 shares of 7 percent preferred stock outstanding, currently selling for $104 per share?

Market:8 percent market risk premium and 6 percent risk-free rate.

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...