Consider the following information for Watson Power Co. Debt Common stock 6.000 6 percent coupon bonds outstanding. $1.000 par value, 20 years to maturity, selling for 105 percent of par the bonds make semiannual payments. 138,000 shares outstanding, selling for $57 per share: the beta is 1.06. 18,000 shares of 5 percent preferred stock outstanding, currently selling for $108 per share. 7 percent market nisk premium and 4 percent risk-free rate. Preferred stock Market Assume the company's tax rate is 34 percent Find the WACC Mis Choice 2583 Siarset, Inc, has a target debt-equity ratio of 0.89. Its WACC IS 11 percent, and the tax rate is 34 percent If the company's cost of equity is 16.5 percent, what is the pretax cost of debt? 7.3% Instead you know that the aftertax cost of debt is 5.9 percent, what is the cost of equity 15.545 fo Starset, Inc., has a target debt-equity ratio of 0.89. Its WACC IS 11 percent, and the tax rate is 34 percent If the company's cost of equity is 16.5 percent, what is the pretax cost of debt? 7.3% if instead you know that the aftertax cost of debt is 5.9 percent, what is the cost of equity? 15.54% Consider the following Information for Watson Power Co. Debt: Common stock 6,000 6 percent coupon bonds outstanding. $1,000 par value, 20 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. 138,000 shares outstanding, seling for $57 per share; the beta is 1.06. 18,000 shares of 5 percent preferred stock outstanding, currently selling for $108 per share. 7 percent market risk premium and 4 percent risk-free rate Preferred stock: Market: Assume the company's tax rate is 34 percent. Find the WACC he Multiple Choice 7.58% 7.72