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Information on Lightning Power Co., is shown below. Assume the companys tax rate is 23 percent. Debt: 16,800 5.9 percent coupon bonds outstanding, $1,000 par
Information on Lightning Power Co., is shown below. Assume the companys tax rate is 23 percent. |
Debt: | 16,800 5.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 106.4 percent of par; the bonds make semiannual payments. |
Common stock: | 550,000 shares outstanding, selling for $81.75 per share; beta is 1.15. |
Preferred stock: | 21,500 shares of 4.15 percent preferred stock outstanding, currently selling for $91.30 per share. The par value is $100. |
Market: | 6.4 percent market risk premium and 2.9 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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