Consider the following information for Evenflow Power Co.,
Debt: 4,500 8.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
Common stock: 99,000 shares outstanding, selling for $58 per share; the beta is 1.06.
Preferred stock: 13,000 shares of 8 percent preferred stock outstanding, currently selling for $105 per share.
Market: 9.5 percent market risk premium and 7 percent risk-free rate.
Assume the company's tax rate is 34 percent.
Required: Find the WACC. (Do not round your intermediate calculations.)
a.) 11.82%
b.) 11.42%
c.) 12.52%
d.) 11.32%
e.) 11.5%