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28 Sep 2019
You are given the following information for Lightning Power Co. Assume the companyâs tax rate is 40 percent.
Debt: 7,000 6.2 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 105 percent of par; the bonds make semiannual payments.
Common stock: 340,000 shares outstanding, selling for $52 per share; the beta is 1.08. Preferred stock: 12,000 shares of 5 percent preferred stock outstanding, currently selling for $72 per share.
Market: 8 percent market risk premium and 4.20 percent risk-free rate.
What is the company's WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
WACC %
You are given the following information for Lightning Power Co. Assume the companyâs tax rate is 40 percent.
Debt: | 7,000 6.2 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. |
Common stock: | 340,000 shares outstanding, selling for $52 per share; the beta is 1.08. |
Preferred stock: | 12,000 shares of 5 percent preferred stock outstanding, currently selling for $72 per share. |
Market: | 8 percent market risk premium and 4.20 percent risk-free rate. |
What is the company's WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
WACC | % |
Collen VonLv2
28 Sep 2019