FIND WACC, ANSWERS 7.56%, AND 6.73% ARE WRONG

Consider the following information for Evenflow Power Co., Assume the company's tax rate is 35 percent. Note: Face value is sometimes used interchangeably with par value. Preferred shares almost always pay a constant dividend, but the dividend is usually quoted as a percent of par value (just like coupons and bonds). So as an example, a 7% preferred dividend on a $100 par value means the annual dividend payment is $7. Multiple Choice 6.93% 6.83% 7.23% 7.56% 6.73%