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You are given the following information for Lightning Power Company. Assume the company s tax rate is 2 2 percent. Debt: 1 7 , 0

You are given the following information for Lightning Power Company. Assume the companys tax rate is 22 percent.
Debt: 17,0006.6 percent coupon bonds outstanding, $1,000 par value, 26 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 500,000 shares outstanding, selling for $68 per share; beta is 1.19.
Preferred stock: 22,000 shares of 4.4 percent preferred stock outstanding, a $100 par value, selling for $89 per share.
Market: 7 percent market risk premium and 5.5 percent risk-free rate.
What is the company's WACC?

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