Question: 5 Skipped Information on Lightning Power Co. is shown below. Assume the company's tax rate is 25 percent Debt: 17,000 6.1 percent coupon bonds outstanding.

 5 Skipped Information on Lightning Power Co. is shown below. Assume
the company's tax rate is 25 percent Debt: 17,000 6.1 percent coupon

5 Skipped Information on Lightning Power Co. is shown below. Assume the company's tax rate is 25 percent Debt: 17,000 6.1 percent coupon bonds outstanding. $1.000 par value, 27 years to maturity, selling for 106.6 percent of par, the bonds make semiannual payments. Common stock: 560,000 shares outstanding, selling for $82.25 per share; beta is 1.25. Preferred stock: 22,500 shares of 4.25 percent preferred stock outstanding, currently selling for $91.50 per share. The par value is $100. Market 6.6 percent market risk premium and 3.2 percent risk-free rate. What is the company's cost of each form of financing? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g.. 32.16.) Cost of equity Aftertax cost of debt Cost of preferred stock % Calculate 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

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