A B C D Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 575,000 shares outstanding, selling for $81 per share; the beta is 1.04. Preferred stock: 30,000 shares of 3.4 percent preferred stock outstanding, a $100 par value, currently selling for $94 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. Input Area: Tax rate Debt Bonds outstanding 21% Settlement date Maturity date Annual coupon rate Coupons per year Bond price (% of par) Redemption (% of par) Par value ($) 12,000 1/1/2020 1/1/2045 4.60% 2 105 100 $1,000 + 575,000 Common stock Shares outstanding Beta Share price 1.04 $81 Preferred stock outstanding Shares outstanding 30,000 Coupon rate 3.40% Par value $100 Share price $94 Market Market risk premium Risk-free rate 7.00% 3.20% (Use cells A6 to B27 from the given information to complete this question. You must use the built-in B Oto answer this question. Leave the "Basis" Input blank in the function. You may enter a constant as a value.) 2 B Output Area: 4 5 Market value of debt 6 Market value of equity 7 Market value of preferred 8 Market value of firm 9 Weight of debt $1,260,000,000 0 Weight of equity 1 Weight of preferred 2 Pretax cost of debt 3 Aftertax cost of debt 14 Cost of equity 5 Cost of preferred 46 WACC = Graded Worksheet +