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Information on Janicek Power Co., is shown below. Assume thecompany’s tax rate is 34 percent. Required: Calculate the company'sWACC.Debt: 8,600 7.9 percent coupon bonds outstanding, $1,000 parvalue, 24 years to maturity, selling for 104.5 percent of par; thebonds make semiannual payments.Common stock: 211,000 shares outstanding, selling for $83.10 pershare; beta is 1.16.Preferred stock: 12,100 shares of 5.8 percent preferred stockoutstanding, currently selling for $97.90 per share.Market: 7.05 percent market risk premium and 4.85 percentrisk-free rate.
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