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You are given the following information for Lighting Power Company. Assume the company's tax rate is 23 percent. Debt: 13,0006.2 percent coupon bonds outstanding, $1,000
You are given the following information for Lighting Power Company. Assume the company's tax rate is 23 percent. Debt: 13,0006.2 percent coupon bonds outstanding, $1,000 par value, 28 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Preferred 20,000 shares of 4 percent preferred stock outstanding, a $100 par stock: value, currently selling for $85 per share. Market: 6 percent market risk premium and 5.1 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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