Information on Lightning Power Co., is shown below. Assume the companys tax rate is 24 percent.

Debt: 18,400 6.4 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 108 percent of par; the bonds make semiannual payments.

Common stock: 630,000 shares outstanding, selling for $85.75 per share; beta is 1.25.

Preferred stock: 29,500 shares of 4.35 percent preferred stock outstanding, currently selling for $92.90 per share. The par value is $100.

Market: 7.2 percent market risk premium and 3.2 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.)

Qul 5 Chapters 11 & 12 Saved Help Save & Exit 7 02:12:53 Information on Lighting Power Co. is shown below. Assume the company's tax rate is 24 percent Debt: 18.400 6.4 percent coupon bonds outstanding. $1.000 par value, 27 years to maturity, selling for 108 percent of par the bonds make semiannual payments Common stock 630.000 shares outstanding, selling for $85.75 per sharebis 125 Preferred stock 29.500 shares of 4,35 percent preferred stock outstanding, currently selling for $92 90 per share. The par value is $100 Market 72 percent market risk premium and 32 percent risk free tate 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.) Cost of out Ahora cost of dett Cost of preferred 12.20 2 12 400 Cost of equity Aftertax cost of debt Cost of preferred stock 12 2013 2.12% 4681% 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.) WACC % Mc Graw