Finding the WACC

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Problem 12-15 Finding the WACC [LO 3] Information on Janicek Power Co., is shown below. Assume the company%u2019s tax rate is 34 percent. Debt: 8,600 7.9 percent coupon bonds outstanding, $1,000 par value, 24 years to maturity, selling for 104.5 percent of par
the bonds make semiannual payments. Common stock: 211,000 shares outstanding, selling for $83.1 per share
beta is 1.16. Preferred stock: 12,100 shares of 5.80 percent preferred stock outstanding, currently selling for $97.9 per share. Market: 7.05 percent market risk premium and 4.85 percent risk-free rate. Required: Calculate the WACC. (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) WACC % Jan 17 2014 02:12 PM

 

Solution ID:609078 | This paper was updated on 26-Nov-2015

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