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Business, 21.08.2020 16:01 woodpeckerdeejpe8wvh

You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 percent. Debt:12,000 6.1 percent coupon bonds outstanding, $1,000 par value, 27 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. Common stock:450,000 shares outstanding, selling for $63 per share; the beta is 1.14. Preferred stock:19,500 shares of 3.9 percent preferred stock outstanding, currently selling for $84 per share. The par value is $100 per share. Market:5 percent market risk premium and 4.9 percent risk-free rate. 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.)

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You are given the following information for Watson Power Co. Assume the company’s tax rate is 22 per...
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