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Please show all work. I need to see the formulas in order to understand the question Do not use Microsoft Excel Thank you 2. You
Please show all work.
I need to see the formulas in order to understand the question
Do not use Microsoft Excel
Thank you
2. You are given the following information for Watson Power Co. Assume the company's tax rate is 40 percent. Debt: 5,000 7.8 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity selling for 107 percent of par, the bonds make semiannual payments. 500,000 shares outstanding, selling for $68 per share; the beta is 1.11 28,000 shares of 3 percent preferred stock outstanding, currently selling for $88 per 9 percent market risk premium and 5.8 percent risk-free rate. Common stock: Preferred stock: Market: What is the company's WACC? (Do not round intermediate calculations. Enter yor answer asa percent rounded to 2 decimal places, e.g., 32.16.) WACCStep by Step Solution
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