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Finding the WACC Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4
Finding the WACC Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common Stock: 495,000 shares outstanding, selling for $63 per share; beta is 1.15. Preferred Stock: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 3.2 percent risk-free rate. Input Area: 21% Tax rate Debt Bonds outstanding Settlement date Maturity date Annual coupon rate Coupons per year Bond price (% of par) Redemption value of par) Par value 10.000 01/01/00 01/01/25 6.40% 2 108 100 1,000 <..here this is not listed as a rate but reporting of the bond price par value common stock shares outstanding beta share b. preferred dividend percentage referred to market risk premium risk-free return on complete following analysis. do hard code values in your calculations. leave input blank yield function. you must use built-in excel function answer question. output area: debt redemption bonds equity firm total all financing components assets="Total" weight mv prefered pretax cost be calculated using fx for credit cosideration aftertax we dgm or sml formula here d hint: has stated calculate payment based coupon wacc please take screenshot calculations>
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