Problem 14-15 Finding the WACC [LO3]

Problem 14-15 Finding the WACC [LO3] You are given the following information for Watson Power Co. Assume the company's tax rate is 23 percent. Debt: 23,000 7.2 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 106 percent of par, the bonds make semiannual payments. Common stock 560,000 shares outstanding, selling for $74 per share; the beta is 1.17. Preferred stock 25,000 shares of 5 percent preferred stock outstanding, currently selling for $95 per share. The par value is $100 per share. Market: 7 percent market risk premium and 5.1 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %