6 Consider the following information for Watson Power Co. 10 points Debt: Common stock 3,500...
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6 Consider the following information for Watson Power Co. 10 points Debt: Common stock 3,500 7 percent coupon bonds outstanding. $1,000 par value, 22 years to maturity, selling for 105 percent of par, the bonds make semiannual payments. 77,000 shares outstanding, selling for $60 per share; the beta is 113 10,000 shares of 6.5 percent preferred stock outstanding, currently selling for $106 per share. 9 percent market risk premium and 6 percent risk-free rate. eBook Preferred stock Print Market: References Assume the company's tax rate is 33 percent Find the WACC. Multiple Choice 10.41% 11.26% Find the WACC. Multiple Choice 10.41% 11.26% rences 10.31% 10.87% 10.61%
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