Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 35 percent. Debt: 10,000 8.6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 96.5 percent of par; the bonds make semiannual payments. Common stock: 225,000 shares outstanding, selling for $84.50 per share; beta is 1.30. Preferred stock: 13,500 shares of 5.75 percent preferred stock outstanding, currently selling for $96.50 per share. Market: 7 percent market risk premium and 4.8 percent risk-free rate.