Given the following information for even flow Power Co. find the WACC. Assume the company's tax rate

Question:

Given the following information for even flow Power Co. find the WACC. Assume the company's tax rate is 35 percent.

Debt: 8,000 6.5 percent coupon bonds outstanding. $1,000 par value, 20 yrs. to maturity, selling for 92 percent of par; the bonds make semi-annual payments.

Common Stock: 250,000 shares outstanding, selling for $57 per share; the beta is 1.05 Preferred Stock: 15,000 shares of 5 percent preferred stock outstanding currently selling for $93 per share

Market: 8 percent market risk premium and 4.5 percent risk-free rate

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...