Question: Finding the WACC given the following information for Bellevue Power Co, find the WACC. Assume the companys tax rate is 35 percent. Deb:5,000 7 percent

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

Deb:5,000 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity selling for 92 percent of par; the bonds make semiannual payments.

Common Stock:100,000 shares outstanding, selling for $57 per share; the beta is 1.15.

Preferred stock:13,000 shares of 7 percent preferred stock outstanding, currently selling for $104 per share?

Market:8 percent market risk premium and 6 percent risk-free rate.

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