Reference no: EM13937397
Given the following information for Electric Transport, find the WACC. Assume the company's tax rate is 34 percent.
Debt: 7,500, 8.4 percent coupon bonds outstanding. $1,000 par value, 22 years to maturity, selling for 103 percent of par, the bonds make semiannual payments.
Common stock: 195,000 shares outstanding, selling for $78 per share, beta is 1.21.
Preferred stock: 11,000 shares of 6.35 percent preferred stock outstanding, currently selling for $76 per share.
Market: 8 percent market risk premium and 5.1 percent risk-free rate.
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: Given the following information for Electric Transport, find the WACC. Assume the company's tax rate is 34 percent. Debt: 7,500, 8.4 percent coupon bonds outstanding. $1,000 par value, 22 years to maturity, selling for 103 percent of par, the bonds m..
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