Information on Janicek Power Co., is shown below. Assume the company\'s tax rate

Question

Information on Janicek Power Co., is shown below. Assume the company's tax rate is 35 percent. 8,500 7.2 percent coupon bonds outstanding, $1,000 par value, 25 years to Debt maturity, selling for 118 percent of par, the bonds make semiannual payments Common stock. 225,000 shares outstanding, selling for $87 per share; beta is 1.15. Preferred stock 15,000 shares of 4.8 percent preferred stock outstanding, currently selling for $98 per share. Market: 7 percent market risk premium and 3.1 percent risk-free rate. Required Calculate the company's WACC. (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) WACC check work

Explanation / Answer

Ans is 70.42%

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