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    "url": "\/study-help\/questions\/consider-the-following-information-for-watson-power-co-debt-2500-2306595",
    "question_creation_date_js": "2024-06-05T18:00:48-04:00",
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    "meta_title": "[Solved] Consider the following information for Wa | SolutionInn",
    "meta_description": "Answer of - Consider the following information for Watson Power Co.: Debt: 2,500 7.5 percent coupon bonds outstanding, $1,000 par | SolutionInn",
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    "question_title_h1": "Consider the following information for Watson Power Co.: Debt: 2,500 7.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity,selling for 102 percent",
    "question_title": "Consider the following information for Watson Power Co.: Debt: 2,500 7.5 percent",
    "question_title_for_js_snippet": "Consider the following information for Watson Power Co   Debt  2,500 7 5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity,selling for 102 percent of par  the bonds make semiannual payments  Common stock  50,000 shares outstanding, selling for $60 per share  the beta is 1 18  Preferred stock  9,000 shares of 6 5 percent preferred stock outstanding, currently selling for $105 per share  Market  8 5 percent market risk premium and 6 percent risk free rate  Assume the company's tax rate is 32 percent  Find the WACC ",
    "question_description": "<p>Consider the following information for Watson Power Co.:<em><\/em><\/p> <p> <\/p> <p><em>Debt:<\/em>2,500 7.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity,selling for 102 percent of par; the bonds make semiannual payments.<em><\/em><\/p> <p> <\/p> <p><em>Common stock:<\/em>50,000 shares outstanding, selling for $60 per share; the beta is 1.18.<em><\/em><\/p> <p> <\/p> <p><em>Preferred stock:<\/em>9,000 shares of 6.5 percent preferred stock outstanding, currently selling for $105 per share.<em><\/em><\/p> <p> <\/p> <p><em>Market:<\/em>8.5 percent market risk premium and 6 percent risk-free rate.<\/p> <p> <\/p> <p>Assume the company's tax rate is 32 percent.<\/p> <p> <\/p> <p>Find the WACC.<\/p> <p><\/p>",
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