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Consider the following Information for Evenflow Power Co., Debt: Common stock Preferred stock: 3,500 9 percent coupon bonds outstanding, $1,000 par value, 18 years to
Consider the following Information for Evenflow Power Co., Debt: Common stock Preferred stock: 3,500 9 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 104 percent of par, the bonds make semiannual payments. 84,000 shares outstanding, selling for $56 per share the beta Is 11. 12,000 shares of 8 percent preferred stock outstanding, currently selling for $105 per share. 10 percent market risk premium and 8 percent risk-free rate. Market: Assume the company's tax rate is 32 percent. Required: Find the WACC. (Do not round your intermediate calculations.) O 12.51% 12.41% 12.7% 12.91% 13.55%
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