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Consider the following information for Evenflow Power Co.,Debt: 2,500 bonds that each year pay 8 percent of par value asan annual coupon, have a $1,000 par value, and a yield to maturityof 7.59 percent compounded annually. The bonds have 18yrs tomaturity and currently sell for 104 percent of par (face)value.Common stock: 62,500 shares outstanding, selling for $57 pershare; the beta is 1.1.Preferred stock: 9,000 preferred shares that pay a dividend of 7percent annually on $100 par value and currently sell for $105 pershare.Market: 9 percent market risk premium and 7 percent risk-freerate.Assume the company's tax rate is 32 percent.Required: Find the WACC. (Do not round yourintermediate calculations.)
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