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Consider the following information for Watson Power Co.: Debt: Common stock: 3,500 6 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity, selling

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Consider the following information for Watson Power Co.: Debt: Common stock: 3,500 6 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity, selling for 103 percent of par, the bonds make semiannual payments. 70,000 shares outstanding, selling for $65 per share; the beta is 1.05. 11,500 shares of 5.5 percent preferred stock outstanding, currently selling for $106 per share. 8 percent market risk premium and 4.5 percent risk-free Preferred stock: Market: rate. Assume the company's tax rate is 32 percent. Find the WACC. Multiple Choice 8.33% O 9.14% O 8.53% 8.83% 8.43%

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