Question: Information on Zero Power Co. is shown below. Assume the company's tax rate is 23 percent. - Debt: 16,8005.9 percent coupon bonds outstanding, $1,000 par
Information on Zero Power Co. is shown below. Assume the company's tax rate is 23 percent. - Debt: 16,8005.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 106.4 percent of par; the bonds make semiannual payments. - Common stock: 550,000 shares outstanding, selling for $81.75 per share; beta is 1.15. - Preferred stock: 21,500 shares of 4.15 percent preferred stock outstanding, currently selling for $91.30 per share. The par value is $100. - Market: 4 percent market risk premium and 2.9 percent risk-free rate. Calculate the company's WACC. 8.41%6.20%7.79%9.08%6.71%8.76%
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