Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / You are given the following information for Watson Power Co Assume the companys tax rate i...

You are given the following information for Watson Power Co Assume the companys tax rate is 38 percent Debt 10000 65 percent coupon bonds outstanding $1000 par value 30 years to maturity

You are given the following information for Watson Power Co. Assume the company's tax rate is 38 percent. Debt: 10,000 6.5 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. Common stock: 370,000 shares outstanding, selling for $55 per share; the beta is 1.11. Preferred stock: 15,000 shares of 5 percent preferred stock outstanding, currently selling for $75 per share. Market: 6 percent market risk premium and 4.5 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

 

Apr 05 2020 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions