Question: Given the following information for Magpie Auto Parts Inc., find the WACC. Assume the company's tax rate is 35 percent. Debt: 8,000 6.5 percent coupon

 Given the following information for Magpie Auto Parts Inc., find the

Given the following information for Magpie Auto Parts Inc., 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, 25 years to maturity, selling for 106 percent of par; the bonds make semiannual payments. Common stock: 310,000 shares outstanding, selling for $57 per share; the beta is 1.05. Preferred stock: 15,000 shares of 4 percent preferred stock outstanding, currently selling for $72 per share. Market: 7 percent market risk premium and 4.5 percent risk-free rate. Hint: Question 6 is related to information provided in Chapter 9. Show your work below (you must show all calculations used to derive you answers): Question WACC? Your

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