Assume the company tax rate

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Reference no: EM132042753

Consider the following information for Evenflow Power Co., Debt: 2,500 8 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 60,000 shares outstanding, selling for $56 per share; the beta is 1.17. Preferred stock: 7,500 shares of 7 percent preferred stock outstanding, currently selling for $105 per share. Market: 10 percent market risk premium and 7 percent risk-free rate. Assume the company's tax rate is 33 percent. Required: Find the WACC. (Do not round your intermediate calculations.)

Reference no: EM132042753

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