Problem 12-15 Finding the WACC [LO 3]

Information on Janicek Power Co., is shown below. Assume the companys tax rate is 34 percent.

Debt:	9,100 8.1 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock:	216,000 shares outstanding, selling for $83.60 per share; beta is 1.21.
Preferred stock:	12,600 shares of 5.8 percent preferred stock outstanding, currently selling for $97.40 per share.
Market:	7.05 percent market risk premium and 4.85 percent risk-free rate.

Required:

Calculate the company's WACC. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

WACC

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