Business, 13.08.2020 16:01 dowlingdestiny

Problem 14-15 Finding the WACC [LO3] You are given the following information for Watson Power Co. Assume the company’s tax rate is 21 percent. Debt: 16,000 6.5 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock:490,000 shares outstanding, selling for $67 per share; the beta is 1.18. Preferred stock: 21,500 shares of 4.3 percent preferred stock outstanding, currently selling for $88 per share. The par value is $100 per share. Market:6 percent market risk premium and 5.4 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

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Problem 14-15 Finding the WACC [LO3] You are given the following information for Watson Power Co. As...

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