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Consider the following information for Evenflow Power Co.,      Debt: 2,000 7 percent coupon bonds outstanding, $1,000 par...

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Finance

Consider the following information for Evenflow Power Co.,

  

  Debt:2,000 7 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 103 percent of par; the bonds makesemiannual payments.
  Common stock:46,000 shares outstanding, selling for $59 per share; the betais 1.2.
  Preferred stock:7,000 shares of 6 percent preferred stock outstanding,currently selling for $105 per share.
  Market:8 percent market risk premium and 6 percent risk-freerate.

  

Assume the company's tax rate is 31 percent.

  

Required:

  

Find the WACC. (Do not round your intermediatecalculations.)

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Transcribed Image Text

Consider the following information for Evenflow Power Co.,    Debt:2,000 7 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 103 percent of par; the bonds makesemiannual payments.  Common stock:46,000 shares outstanding, selling for $59 per share; the betais 1.2.  Preferred stock:7,000 shares of 6 percent preferred stock outstanding,currently selling for $105 per share.  Market:8 percent market risk premium and 6 percent risk-freerate.  Assume the company's tax rate is 31 percent.  Required:  Find the WACC. (Do not round your intermediatecalculations.)

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