Consider the following information for Evenflow Power Co., Debt: 4,000 7.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 100,000 shares outstanding, selling for $61 per share; the beta is 1.1. Preferred stock: 13,000 shares of 6.5 percent preferred stock outstanding, currently selling for $105 per share. Market: 9 percent market risk premium and 6 percent risk-free rate. Assume the company's tax rate is 32 percent. Required: Find the WACC.(Do not round your intermediate calculations.) Multiple Choice 11.21% 10.96% 11.63% 10.71% 10.81%

Consider the following information for Evenflow Power Co., Debt: 4, XXXXXXXXXXpercent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make...

Consider the following information for Evenflow Power Co.,


Debt:		4,000 7.5 percent coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:		100,000 shares outstanding, selling for $61 per share; the beta is 1.1.
Preferred stock:		13,000 shares of 6.5 percent preferred stock outstanding, currently selling for $105 per share.
Market:		9 percent market risk premium and 6 percent risk-free rate.

Assume the company's tax rate is 32 percent.

Required:

Find the WACC.(Do not round your intermediate calculations.)

Multiple Choice

Jun 07, 2022