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Information on Lightning Power Co., is shown below. Assume the company's tax rate is 25 percent. Debt 18,500 6.3 percent coupon bonds outstanding, $1,000 par
Information on Lightning Power Co., is shown below. Assume the company's tax rate is 25 percent. Debt 18,500 6.3 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 108.1 percent of par, the bonds make semiannual payments polnts 635,000 shares outstanding, selling for $86.00 per share; beta is 1.15 Common stock: Preferred stock: 30,000 shares of 4.4 percent preferred stock outstanding, currently selling for $93.00 per share. The par value is $100 01:41:38 Market: 73 percent market risk premium and 3.1 percent risk-free rate. ook References 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 00 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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