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consider the following information for Sherlock Power co. Debt- 2,000 7 percent coupon bonds outstanding. $1,000 par value, 19 years to maturity, selling for 104
consider the following information for Sherlock Power co.
Debt- 2,000 7 percent coupon bonds outstanding. $1,000 par value, 19 years to maturity, selling for 104 percent of par. the bonds make semiannual payments.
common stock- 46,000 share's outstanding, selling for $56 pet share. the beta is 1:1
Preferred stock- 6,000 shares of 5.5 percent preferred stock outstanding, currently selling for $106 Per share.
market- 8 percent market risk premium and 5 percent risk free rate.
assume the company's tax rate is 34 percent.
find the WACC
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