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Consider the following information for Evenflow Power Co., Debt:2,500 5.5 percent coupon bonds outstanding, $1,000 par value,20 years to maturity, selling for 104 percent of par; the bondsmake semiannual payments. Common stock:50,000 shares outstanding, selling for $63 per share; the betais 1.12. Preferred stock:9,000 shares of 4.5 percent preferred stock outstanding,currently selling for $105 per share. Market:7 percent market risk premium and 4 percent risk-freerate. Assume the company's tax rate is 31 percent. Required: Find the WACC. (Do not round your intermediatecalculations.)8.19%7.68%7.46%7.96%7.56%
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