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Information on Lightning Power Co., is shown below. Assume the companys tax rate is 21 percent. Debt: 18,100 5.7 percent coupon bonds outstanding, $1,000 par
Information on Lightning Power Co., is shown below. Assume the companys tax rate is 21 percent. |
Debt: | 18,100 5.7 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 107.7 percent of par; the bonds make semiannual payments. |
Common stock: | 615,000 shares outstanding, selling for $85.00 per share; beta is 1.10. |
Preferred stock: | 28,000 shares of 4.2 percent preferred stock outstanding, currently selling for $92.60 per share. The par value is $100. |
Market: | 6.9 percent market risk premium and 3.5 percent risk-free rate. |
What is the company's cost of each form of financing? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
Calculate the company's WACC. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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