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68.
Given the following information for Evenflow Power Co., find the WACC. Assume the
company's tax rate is 35 percent.
Common Stock
Preferred Stock
Bonds
Shares
250,000
Shares
15,000
Number
8,000
Price
57
Yield
5%
Coupon
6.5%
Beta
1.05
Price
93
Maturity
20
Risk-free rate
4.5%
Price
92%
Mkt. risk premium
8.0%
Dividend
Semiannual coupons
Cost of capital
Market Value
Capital structure %
WACC =
TI

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So, the weighted average cost of capital is... View the full answer

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