Find the wacc

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Reference no: EM132037230

Consider the following information for Evenflow Power Co.,

Debt: 3,500 7.5 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.

Common stock: 80,500 shares outstanding, selling for $57 per share; the beta is 1.14.

Preferred stock: 10,000 shares of 6.5 percent preferred stock outstanding, currently selling for $107 per share.

Market: 8.5 percent market risk premium and 5.5 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: EM132037230

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