Market 95 percent market risk premium and 75 percent


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 104 percent of par; the bonds make semiannual payments. Common stock: 99,000 shares outstanding, selling for $64 per share; the beta is 1.13. Preferred stock: 13,500 shares of 8 percent preferred stock outstanding, currently selling for $106 per share. Market: 9.5 percent market risk premium and 7.5 percent risk-free rate. Assume the company's tax rate is 34 percent. Required: Find the WACC. (Do not round your intermediate calculations.) A.) 12.16% B.)12.06% C.) 12.33% D.)13.19% E.)12.56%.

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Financial Management: Market 95 percent market risk premium and 75 percent
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