Finding the WACC

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Reference no: EM131923651

Finding the WACC. Consider the following information for Evenflow Power Co.,

Debt: 5,500 7.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.

Common stock: 115,500 shares outstanding, selling for $62 per share; the beta is 1.12.

Preferred stock: 19,500 shares of 7 percent preferred stock outstanding, currently selling for $104 per share.

Market: 9.5 percent market risk premium and 6 percent risk-free rate. Assume the company's tax rate is 32 percent.

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

Reference no: EM131923651

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