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Consider the following information for Evenflow Power Co., Debt:3,000 8 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 104 percent of par; the bonds makesemiannual payments. Common stock:60,000 shares outstanding, selling for $59 per share; the betais 1.18. Preferred stock:9,500 shares of 7 percent preferred stock outstanding,currently selling for $106 per share. Market:9 percent market risk premium and 6.5 percent risk-freerate. Assume the company's tax rate is 33 percent. Required: Find the WACC. (Do not round your intermediatecalculations.)rev: 09_20_2012Multiple Choice10.84%11.01%10.74%11.24%11.86%
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