Consider the following information for Evenflow Power Co., Debt: 2,000 5.5 percent coupon bonds outstanding, $1,000...

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Consider the following information for Evenflow Power Co., Debt:2,000 5.5 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 102 percent of par; the bonds makesemiannual payments. Common stock: 42,000 shares outstanding,selling for $57 per share; the beta is 1.13. Preferred stock: 6,000shares of 5 percent preferred stock outstanding, currently sellingfor $105 per share. Market: 7 percent market risk premium and 4.5percent risk-free rate. Assume the company's tax rate is 33percent.
What is the WAAC?

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Consider the following information for Evenflow Power Co., Debt:2,000 5.5 percent coupon bonds outstanding, $1,000 par value, 18years to maturity, selling for 102 percent of par; the bonds makesemiannual payments. Common stock: 42,000 shares outstanding,selling for $57 per share; the beta is 1.13. Preferred stock: 6,000shares of 5 percent preferred stock outstanding, currently sellingfor $105 per share. Market: 7 percent market risk premium and 4.5percent risk-free rate. Assume the company's tax rate is 33percent.What is the WAAC?