Consider the following information on alexandria power

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Consider the following information on Alexandria Power Co.Debt: 4,000, 7% semiannual coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.

Preferred Stock:10,000 outstanding with par value of $100 and a market value of 105 and $10 annual dividend.Common Stock: 84,000 shares outstanding, selling for $56 per share, the beta is 2.08.The market risk premium is 5.5%, the risk free rate is 3.5% and Alexandria's tax rate is 32%.Calculate the WACC?

Reference no: EM13584504

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