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QUESTION 1 Given the following information for Janicek Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,500 6.2% coupon

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QUESTION 1 Given the following information for Janicek Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 10,500 6.2% coupon bonds outstanding $1000 par value, 20 years to maturity selling for 95% of par, semi-annual payments. Common stock: 200,000 shares outstanding, selling for $115 per share; beta is 1.05. Just paid dividend of 56 per share and an estimated dividend growth rate of 5.5% Preferred stock: 10,000 shares of 5.0% preferred stock outstanding, currently selling for 598 per share. Market: 7% market risk premium and 3.0% risk-free rate. - Show Steps TTT Arial 3 (12pt) T.E.E . Path:p Words

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