Finding the WACC. Given the following information for Janicek Power Co., find the WACC. Assume the company’s tax rate is 35 percent.

Finding the WACC. Given the following information for Janicek Power Co., find the WACC. Assume the company’s tax rate is 35 percent.

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.


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