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Consider the following information for Evenflow Power Co., Debt: 4,500 9 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 102
Consider the following information for Evenflow Power Co., |
Debt: | 4,500 9 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. | ||
Common stock: | 94,500 shares outstanding, selling for $55 per share; the beta is 1.06. | ||
Preferred stock: | 14,500 shares of 8.5 percent preferred stock outstanding, currently selling for $104 per share. | ||
Market: | 10 percent market risk premium and 7.5 percent risk-free rate. | ||
Assume the company's tax rate is 34 percent. |
Required: |
Find the WACC. (Do not round your intermediate calculations.) |
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