Chapter 12 - End of Chapter Questions and Problems - Question 14 (Cost of Preferred Stock) O 3.76% 4.57% 5.79% 8.48% 11.50% LO 3 14. Finding the WACC Given the following information for Lightning Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 16,000 6.2 percent coupon bonds outstanding. $1.000 par value, 25 years to maturity, selling for 108 percent of par, the bonds make semiannual payments. Common stock: 535,000 shares outstanding, selling for $81 per share: beta is 1.20. Preferred stock: 20,000 shares of 4.2 percent preferred stock outstanding, currently selling for $92 per share. The par value is $100. Market: 7 percent market risk premium and 3.1 percent risk- free rate