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Please answer ASAP will upvote if correct. Consider the following information for Watson Power Co.: Debt: Common stock: Preferred stock: 3,000 6 percent coupon bonds
Please answer ASAP will upvote if correct.
Consider the following information for Watson Power Co.: Debt: Common stock: Preferred stock: 3,000 6 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. 69,000 shares outstanding, selling for $61 per share; the beta is 1.15. 10,500 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share. 8 percent market risk premium and 5 percent risk-free rate. Market: Assume the company's tax rate is 31 percent. Find the WACC Step by Step Solution
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