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You are given the following information for Lighting Power Company. Assume the company's tax rate is 24 percent. Debt: 9,000 5.8 percent coupon bonds outstanding,
You are given the following information for Lighting Power Company. Assume the company's tax rate is 24 percent.
Debt: | 9,000 5.8 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 106 percent of par; the bonds make semiannual payments. |
Common Stock: | 420,000 shares outstanding, selling for $60 per share; the beta is 1.11. |
Preferred Stock: | 18,000 shares of 3.6 percent preferred stock outstanding, a $100 par value, currently selling for $81 per share. |
Market: | 5 percent makret risk premium and 4.6 percent risk-free rate. |
What is the company's WACC? (Do not round intermediate calculations and enter your anwer as a percent rounded to 2 decimal places, e.g., 32.16.)
WACC | % |
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