How to determine what is the company wacc

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Reference no: EM132554202

You are given the following information for Lightning Power Co. Assume the company's tax rate is 24 percent.

Debt: 24,000 7.3 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 107 percent of par; the bonds make semiannual payments.

Common stock: 570,000 shares outstanding, selling for $75 per share; beta is 1.19. Preferred stock:25,500 shares of 5.1 percent preferred stock outstanding, currently selling for $96 per share. The par value is $100 per share.

Market: 6 percent market risk premium and 4.9 percent risk-free rate.

Question 1: What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM132554202

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