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Consider the following information for Evenflow Power Co., Debt: Common stock: Preferred stock: Market: 5,500 6.5 percent coupon bonds outstanding, $1,000 par value, 22
Consider the following information for Evenflow Power Co., Debt: Common stock: Preferred stock: Market: 5,500 6.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. 121,000 shares outstanding, selling for $65 per share; the beta is 1.15. 19,500 shares of 5.5 percent preferred stock outstanding, currently selling for $107 per share. 8.5 percent market risk premium and 5 percent risk-free rate. Assume the company's tax rate is 35 percent. Required: Find the WACC. (Do not round your intermediate calculations.)
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