1. Given the following information for Lightning Power Co., find the WACC. Assume the companys tax rate is 35%.
   • Debt: 8,000 6.5% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 106% of par. The bonds make semi-annual payments
   • Common Stock: 310,000 shares outstanding, selling for $57 per share; the beta is 1.05
   • Preferred Stock: 15,000 shares of 4% preferred stock outstanding, currently selling for $72 per share (Note: 4% means that the dividend is $4).
   • 7% market risk premium and 4.5% risk free rate.

Find the YTM on Debt, Cost of Preferred Stock, Cost of Equity, Weighted Cost of Equity, and the WACC.