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Information on Lightning Power Co., is shown below. Assume the company's tax rate is 23 percent Debt: 17,800 6.1 percent coupon bonds outstanding, $1,000 par
Information on Lightning Power Co., is shown below. Assume the company's tax rate is 23 percent Debt: 17,800 6.1 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 107.4 percent of par, the bonds make semiannual payments. Common stock: 600,000 shares outstanding, selling for $84.25 per share; beta is 1.20. Preferred stock: 26,500 shares of 4.35 percent preferred stock outstanding, currently selling for $92.30 per share. The par value is $100. Market 6.6 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.) Cost of equity Aftertax cost of debt Cost of preferred stock 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
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