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Information on Janicek Power Co., is shown below. Assume the companys tax rate is 38 percent. Debt: 9,800 9.3 percent coupon bonds outstanding, $1,000 par
Information on Janicek Power Co., is shown below. Assume the companys tax rate is 38 percent. |
Debt: | 9,800 9.3 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 97.5 percent of par; the bonds make semiannual payments. |
Common stock: | 223,000 shares outstanding, selling for $84.30 per share; beta is 1.28. |
Preferred stock: | 13,300 shares of 5.9 percent preferred stock outstanding, currently selling for $96.70 per share. |
Market: | 7.15 percent market risk premium and 4.95 percent risk-free rate. |
Required: |
Calculate the company's WACC. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
WACC | % |
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