Calculate the company wacc

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Reference no: EM131915646

Information on Gerken Power Co., is shown below. Assume the company’s tax rate is 34 percent. Debt: 9,100 8.1 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 216,000 shares outstanding, selling for $83.60 per share; beta is 1.21. Preferred stock: 12,600 shares of 5.8 percent preferred stock outstanding, currently selling for $97.40 per share. Market: 7.05 percent market risk premium and 4.85 percent risk-free rate.

Required: Calculate 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.)

WACC %

Please show all steps.

Reference no: EM131915646

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