Question
Please do NOT NOT NOT NOT use financial calculator do NOT show steps in this format DO NOT USE THIS !!!!!(keys to use in a
Please do NOT NOT NOT NOT use financial calculator do NOT show steps in this format DO NOT USE THIS !!!!!(keys to use in a financial calculator: 2nd I/Y 2, FV 1000, PV -1050, N 40, PMT 34.5, CPT I/Y) DO NOT TYPE
Using financial calculator: N = 40 PV = -1050 PMT = 34.50 FV = 1000
I = 3.226%
Please show another way. I already had three problems. I would appreciate it if you can show without typing or using a financial calculator.
Please help. Please do NOT use excel. Please do NOT show in excel. Please TYPE the solution. Please do NOT explain by using a financial calculator. Please explain step by step. Please do NOT skip steps! Please keep solution organized. Do NOT type by hand. Do NOT NOT use a financial calculator.
Please SHOW ALL FORMULAS AND WORK STEP BY STEP. Thank you! :)
Problem 14-15 Finding the WACC [LO3]
You are given the following information for Watson Power Co. Assume the companys tax rate is 40 percent. |
Debt: | 8,000 6.9 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. |
Common stock: | 410,000 shares outstanding, selling for $59 per share; the beta is 1.15. |
Preferred stock: | 19,000 shares of 3 percent preferred stock outstanding, currently selling for $79 per share. |
Market: | 9 percent market risk premium and 4.9 percent risk-free rate. |
What is the company's WACC?
(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
WACC | % |
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