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Consider the following information for Evenflow Power Co.,
Debt: 2,500 6.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock: 62,500 shares outstanding, selling for $57 per share; the beta is 1.14.
Preferred stock: 8,500 shares of 6 percent preferred stock outstanding, currently selling for $107 per share.
Market: 8 percent market risk premium and 5.5 percent risk-free rate. Assume the company's tax rate is 31 percent.
Required:
Find the WACC. (Do not round your intermediate calculations.)
rev: 09_20_2012
9.78%
10.34%
9.54%
9.64%
10.04%
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