Solution-Percent preferred stock outstanding

Percent preferred stock outstanding

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Reference no: EM132289010

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%

Reference no: EM132289010

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Percent preferred stock outstanding

Reference no: EM132289010

Reference no: EM132289010

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