Problem 12-15 Finding the WACC [LO 3]

Information on Janicek Power Co., is shown below. Assume the companys tax rate is 35 percent.

Debt:	10,000 8.6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 96.5 percent of par; the bonds make semiannual payments.
Common stock:	225,000 shares outstanding, selling for $84.50 per share; beta is 1.30.
Preferred stock:	13,500 shares of 5.75 percent preferred stock outstanding, currently selling for $96.50 per share.
Market:	7 percent market risk premium and 4.8 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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