S14-15 Finding the WACC [LO3] You are given the following information for Lightning Power Company. Assume the company's tax rate is 21 percent. Debt: 12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 575,000 shares outstanding, selling for $81 per share; the beta is 1.04. Preferred stock: Market: 30,000 shares of 3.4 percent preferred stock outstanding, a $100 par value, currently selling for $94 per share. 7 percent market risk premium and 3.2 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.) WACC %

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Chapter11: The Cost Of Capital
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S14-15 Finding the WACC [LO3]
You are given the following information for Lightning Power Company. Assume the
company's tax rate is 21 percent.
Debt:
12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par value,
25 years to maturity, selling for 105 percent of par; the bonds make
semiannual payments.
Common
stock:
575,000 shares outstanding, selling for $81 per share; the beta is 1.04.
Preferred
stock:
Market:
30,000 shares of 3.4 percent preferred stock outstanding, a $100 par
value, currently selling for $94 per share.
7 percent market risk premium and 3.2 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.)
WACC
%
Transcribed Image Text:S14-15 Finding the WACC [LO3] You are given the following information for Lightning Power Company. Assume the company's tax rate is 21 percent. Debt: 12,000 bonds with a 4.6 percent coupon outstanding, $1,000 par value, 25 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. Common stock: 575,000 shares outstanding, selling for $81 per share; the beta is 1.04. Preferred stock: Market: 30,000 shares of 3.4 percent preferred stock outstanding, a $100 par value, currently selling for $94 per share. 7 percent market risk premium and 3.2 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.) WACC %
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