This paper circulates around the core theme of Finding the WACC. Given the following information for Janicek Power Co., find the WACC. Assume the company’s tax rate is 35 percent. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 45. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Finding the WACC. Given the following information for Janicek Power
Co., find the WACC. Assume the company’s tax rate is 35 percent.
Debt: 8,500 7.2 percent coupon bonds outstanding, $1,000 par
value, 25 years to maturity, selling for 118 percent of par; the bonds
make semiannual payments.
Common stock: 225,000 shares outstanding, selling for $87 per share; beta is 1.15.
Preferred stock: 15,000 shares of 4.8 percent preferred stock outstanding, currently selling for $98 per share.
Market: 7 percent market risk premium and 3.1 percent risk-free rate.