Problem 14-15 Finding the WACC (L04) You are given the following information for Magrath Power Co. Assume the company's tax rate is 35% Debt 10,000 6.4% coupon bonds outstanding. $1,000 par value, 25 years to maturity, selling for 108% of par, the bonds make semiannual payments. Common stock 495,000 shares outstanding, seling for $63 per share the beta is 1.15. Preferred stock: 35,000 shares of 3.5% preferred stock outstanding, currently selling for $72 per share. Market 7% market risk premium and 3.2% risk-free rate What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.) WACC 0 % Problem 12-4 Calculating Returns (L01) Suppose you bought a 7% coupon bond one year ago for $970. The bond sells for $940 today. a. Assuming a $1.000 face value, what was your total dollar return on this investment over the past year? (Omit $ sign in your response.) Total dollar return b. What was your total nominal rate of return on this investment over the past year? (Round your answer to 2 decimal places.) Nominal rate of return 412 % c. If the inflation rate last year was 3%, what was your total real rate of return on this investment? (Do not round intermediate calculations, Round the final answer to 2 decimal places.) Real rate of return %