Reference no: EM131346226
Consider the following information for Evenflow Power Co.,
Debt: 5,000 5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock: 120,000 shares outstanding, selling for $57 per share; the beta is 1.13.
Preferred stock: 17,000 shares of 3.5 percent preferred stock outstanding, currently selling for $108 per share.
Market: 5.5 percent market risk premium and 2.5 percent risk-free rate.
Assume the company's tax rate is 33 percent.
Required
Find the WACC. (Do not round your intermediate calculations.)
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: Consider the following information for Evenflow Power Co., Debt: 5,000 5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 120,000 shares outsta..
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