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Find PowerCorp's weighted average cost of capital: . The corporate marginal tax rate is 23 percent. . PowerCorp's 10-year bonds have an 8% coupon. .

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Find PowerCorp's weighted average cost of capital: . The corporate marginal tax rate is 23 percent. . PowerCorp's 10-year bonds have an 8% coupon. . There are 2,000 of these, priced at $1148.77 . The market risk premium is 3.9 percent . PowerCorp is 1.4 times as risk as the market .PowerCorp has 500,000 shares outstanding, priced at $22 22 per share . Treasury bonds pay 2.1 percent interest. . All bonds are semi-annual

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