Find the wacc

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Question: Consider the following information for Watson Power Company:
Debt: 4,500 6.5 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: 94,500 shares outstanding, selling for $59 per share; the beta is 1.08.
Preferred stock: 13,000 shares of 5 percent preferred stock outstanding, currently selling for $106 per share.
Market: 8 percent market risk premium and 4 percent risk-free rate.
Assume the company's tax rate is 32 percent.
Find the WACC.

Reference no: EM133633266

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