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The following information is available for the Watson Power Company: Debt 10,000 Bonds each with 6% coupon rate (coupons paid annually), and $1,000 face value,
The following information is available for the Watson Power Company:
Debt 10,000 Bonds each with 6% coupon rate (coupons paid annually), and
$1,000 face value, 25 years to mature, selling at 108% of par value.
Common Stock 500,000 shares selling at $60 per share and with a Beta of 1.2.
Market The Risk-Free Rate is 3% and the Market Risk Premium is 5.5%
What is the WACC for Watson Power ? (Use Market Value Weights for Debt and Equity. Show all calculations.)
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