Reference no: EM132505819

Question 1: Given the following information for Evenflow Power Co., the WACC is __________. Debt:

1. 2,500 7 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 103 percent of par;
2. the bonds make semiannual payments. Common stock: 60,000 shares outstanding, selling for $64 per share; the beta is 1.13.
3.  Preferred stock: 7,500 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share.
4.  Market: 8.5 percent market risk premium and 5 percent risk-free rate. Marginal Tax Rate: 34%.