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9) 30 points Information on Gerken Power Co., is shown below. Assume the company's tax rate is 38 percent. Debt 8,800 8.1 percent coupon bonds

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9) 30 points Information on Gerken Power Co., is shown below. Assume the company's tax rate is 38 percent. Debt 8,800 8.1 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 103.5 percent of par; the bonds make semiannual payments Common stock: 213,000 shares outstanding, selling for $83.30 per share; beta is 1.18. Preferred stock: 12,300 shares of 5.9 percent preferred stock outstanding, currently selling for $97.70 per share. Market: 7.15 percent market risk premium and 4.95 percent risk-free rate. What is the company's cost of each form of financing? What is the market value of the firm? Calculate the company's WACC

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