Problem 12 15 Finding the WACC LO 3 Information on Janicek Power Co , is shown below Assume the companys tax rate is 35 percent Debt 8,500 7 2 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 118 percent of par the bonds make semiannual payments Common stock 225,000 shares outstanding, selling for $87 per share beta is 1 15 Preferred stock 15,000 shares of 4 8 percent preferred stock outstanding, currently selling for $98 per share Market 7 percent market risk premium and 3 1 percent risk free rate Required Calculate the company's WACC (Do not round intermediate calculations Enter your answer as a percentage rounded to 2 decimal places (e g , 32 16) ) WACC Hints References eBook Resources Hint 1

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Question: Problem 12-15 Finding the WACC [LO 3] Information on Janicek Power Co., is shown below. Assume the companys tax rate is 35 percent. Debt: 8,500

Problem 12-15 Finding the WACC [LO 3]

Information on Janicek Power Co., is shown below. Assume the companys tax rate is 35 percent.

Debt:	8,500 7.2 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 118 percent of par; the bonds make semiannual payments.

Common stock:	225,000 shares outstanding, selling for $87 per share; beta is 1.15.

Preferred stock:	15,000 shares of 4.8 percent preferred stock outstanding, currently selling for $98 per share.

Market:	7 percent market risk premium and 3.1 percent risk-free rate.

Required:

Calculate the company's WACC. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

WACC

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