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show work please!! 1. Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 35 percent. Debt: 10,000

image text in transcribedshow work please!!

1. Given the following information for Watson Power Co., find the WACC. Assume the company's tax rate is 35 percent. Debt: 10,000 6.4 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, sel#ling for 108 percent of par; the bonds make semiannual payments. 495,000 shares outstanding, selling for $63 per share; the beta is 1.15. Common stock: Preferred stock: Market: 35,000 shares of 3.5 percent preferred stock outstanding, currently selling for $72 per share. 7 percent market risk premium and 3.2 percent risk-free rate

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