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You are given the following information for Lightning Power Co. Assume the companys tax rate is 35 percent. Debt: 6,000 6.7 percent coupon bonds outstanding,
You are given the following information for Lightning Power Co. Assume the companys tax rate is 35 percent. |
Debt: | 6,000 6.7 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. |
Common stock: | 390,000 shares outstanding, selling for $57 per share; the beta is 1.13. |
Preferred stock: | 17,000 shares of 4 percent preferred stock outstanding, currently selling for $77 per share. |
Market: | 6 percent market risk premium and 4.70 percent risk-free rate. |
What is the company's WACC? |
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