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Business, 17.04.2020 02:25 HourlongNine342

Given the following information for Lightning Power Co., find the WACC. Assume the company’s tax rate is 35%. Debt: 8,000 6.5% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 106% of par. The bonds make semi-annual payments Common Stock: 310,000 shares outstanding, selling for $57 per share; the beta is 1.05 Preferred Stock: 15,000 shares outstanding with a dividend of $4 each, currently selling for $72 per share 7% market risk premium and 4.5% risk free rate.

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Given the following information for Lightning Power Co., find the WACC. Assume the company’s tax rat...
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