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l You are given the following information for Lightning Power Co. Assume the company's tax rate is 21 percent. Debt: 11,000 6 percent coupon bonds

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You are given the following information for Lightning Power Co. Assume the company's tax rate is 21 percent. Debt: 11,000 6 percent coupon bonds outstanding, $1,000 par value, 26 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 440,000 shares outstanding, selling for $62 per share; beta is 1.13. Preferred stock: 19,000 shares of 3.8 percent preferred stock outstanding, currently selling for $83 per share. The par value is $100 per share. Market: 7 percent market risk premium and 4.8 percent risk-free rate. What is 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 % Jiminy's Cricket Farm issued a 20-year, 6 percent semiannual coupon bond 3 years ago. The bond currently sells for 103 percent of its face value. The company's tax rate is 22 percent. The book value of the debt issue is $60 million. In addition, the company has a second debt issue, a zero coupon bond with 9 years left to maturity; the book value of this issue is $25 million, and the bonds sell for 64 percent of par. a. What is the company's total book value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) b. What is the company's total market value of debt? (Enter your answer in dollars, not millions of dollars, e.g. 1,234,567.) c. What is the aftertax cost of debt? (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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