Consider the following information for Evenflow Power Co.,
Debt:
4,500 6.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:
103,500 shares outstanding, selling for $65 per share; the beta is 1.05.
Preferred stock:
12,500 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:
7.5 percent market risk premium and 4.5 percent risk-free rate.
Assume the company's tax rate is 34 percent.
Find the WACC. (Do not round your intermediate calculations.)
8.58%
9.35%
8.48%
8.7%
8.98%
Consider the following information for Evenflow Power Co.,
| Debt: | 4,500 6.5 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. | ||
| Common stock: | 103,500 shares outstanding, selling for $65 per share; the beta is 1.05. | ||
| Preferred stock: | 12,500 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share. | ||
| Market: | 7.5 percent market risk premium and 4.5 percent risk-free rate. | ||
| | |||
Assume the company's tax rate is 34 percent.
Find the WACC. (Do not round your intermediate calculations.)
| | 8.58% |
| | 9.35% |
| | 8.48% |
| | 8.7% |
| | 8.98% |
Related questions
Given the following information for Evenflow Power Co., the WACC is percent. Assume the company's tax rate is 35 percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))
| Debt: | 8,000 bonds outstanding, 6.5 percent coupon rate (APR), $1,000 par value, 20 years to maturity, selling for 92 percent of par; the bonds make semiannual payments. |
| Common stock: | 250,000 shares outstanding, selling for $57 per share; the beta is 1.05. |
| Preferred stock: | 15,000 shares of 5 percent preferred stock outstanding, currently selling for $93 per share. (Note: a 5% preferred stock means that the dividend is $5) |
| Market: | 8 percent market risk premium and 4.5 percent risk-free rate. |
