You are given the following information for Lighting Power Company. Assume the company’s tax rate is 25 percent.       Debt: 10,000 5.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 107 percent of par; the bonds make semiannual payments.       Common stock: 430,000 shares outstanding, selling for $61 per share; the beta is 1.12.       Preferred stock: 18,500 shares of 3.7 percent preferred stock outstanding, a $100 par value, currently selling for $82 per share.       Market: 6 percent market risk premium and 4.7 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.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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You are given the following information for Lighting Power Company. Assume the company’s tax rate is 25 percent.
   
  Debt: 10,000 5.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 107 percent of par; the bonds make semiannual payments.
   
  Common stock: 430,000 shares outstanding, selling for $61 per share; the beta is 1.12.
   
  Preferred stock: 18,500 shares of 3.7 percent preferred stock outstanding, a $100 par value, currently selling for $82 per share.
   
  Market: 6 percent market risk premium and 4.7 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.)
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Debt, Equity and Preferred stock

Tax rate is 25%

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