Find the wacc

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Reference no: EM131174713

Consider the following information for Evenflow Power Co., Debt: 3,500 5.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 102 percent of par;

the bonds make semiannual payments.

Common stock: 84,000 shares outstanding,

selling for $55 per share;

the beta is 1.19. Preferred stock:

10,000 shares of 4.5 percent preferred stock outstanding, currently selling for $103 per share.

Market: 7 percent market risk premium and 4.5 percent risk-free rate.

Assume the company's tax rate is 33 percent.

Required:

Find the WACC.

Reference no: EM131174713

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