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15. Finding the WACC [LO3] Given the following information for Evenflow Power Co., find the WACC. Assume the company's t
Posted: Sat Feb 26, 2022 9:06 am
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- 15 Finding The Wacc Lo3 Given The Following Information For Evenflow Power Co Find The Wacc Assume The Company S T 1 (490.93 KiB) Viewed 31 times
15. Finding the WACC [LO3] Given the following information for Evenflow Power Co., find the WACC. Assume the
company's tax rate is 35 percent. Debt: 8,000 6.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 92 percent of par; the bonds make semiannual payments. Common stock: 250,000 shares outstanding, selling for $57 per share; the beta is 1.05. Preferred stock: 15,000 shares of 5 percent preferred stock outstanding, currently selling for $93 per share. Market: 8 percent market risk premium and 4.5 percent risk-free rate.