What is the company wacc

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Question - You are given the following information for Lighting Power Company. Assume the company's tax rate is 23 percent.

Debt: 23,000 7.2 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 106 percent of par; the bonds make semi-annual payments.

Common stock: 560,000 shares outstanding, selling for $74 per share; the beta is 1.17.

Preferred stock: 25,000 shares of 5 percent preferred stock outstanding, a $100 par stock: value, currently selling for $95 per share.

Market: 7 percent market risk premium and 5.1 percent risk-free rate.

Required - What is the company's WACC?

Reference no: EM133169521

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