You are given the following information for Watson power co assume the company's tax rate is 40 percent.Debt: 5000 coupon bonds outstanding yielding 7.14 percent and paying a 7.8 percent coupon 1000 par value

lpter14 - Cost of Capital k ' value: 15.00 points You are given the following information for Watson Power Co. Assume the company's tax rate is 40 percent. Debt: 5,000 coupon bonds outstanding, yielding 7.14 percent and paying a 7.8 percent coupon, $1,000 par Value, 20 years to maturity, selling for 107 percent of par; the bonds L make se'miannual payments. Common stocki 500,000 shares outstanding, selling for $68 per share; the beta is 1.11. Preferred stock: 28,000 shares of 3 percent preferred stock OUtstanding, currently selling for $88 per ' share. " it " " Market: , 9 percent market risk premium and'5.8 risk-free rate. What is the company's WACC? (Do mtr"; round lrlttz'rm'udiiite calculations. Enter your answer as a rounder! toii decimal plzr.t:o:sz,nel.g., illfl'li) r M : l r ' 1 * "Emma 'eBookanesourcese . ' ' 'Dilliliilzzulty: Bessie: - LE." '..., "Mu...,mm.u.uu "HM...-.;.>---.-AJ-4 buupu- .. .o......-..s. v