You are given the following information for Lightning Power Co. Assume the company’s tax rate is 40 percent. Debt: 8,000 7.5 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 470,000 shares outstanding, selling for $65 per share; the beta is 1.08. Preferred stock: 25,000 shares of 3 percent preferred stock outstanding, currently selling for $85 per share. Market: 8 percent market risk premium and 5.50 percent risk-free rate.