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Find the WACC

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Reference no: EM131859812

Consider the following information for Evenflow Power Co.,

Debt: 5,000 6 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.

Common stock: 100,000 shares outstanding, selling for $56 per share; the beta is 1.11.

Preferred stock: 16,000 shares of 5 percent preferred stock outstanding, currently selling for $105 per share.

Market: 7 percent market risk premium and 4 percent risk-free rate.

Assume the company's tax rate is 31 percent.

Required:

Find the WACC. (Do not round your intermediate calculations.)

Reference no: EM131859812

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