Consider the following information for Watson Power Co.: Debt: 4,500 9 percent coupon bonds outstanding, $1,000...

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Consider the following information for Watson Power Co.: Debt:4,500 9 percent coupon bonds outstanding, $1,000 par value, 20years to maturity, selling for 104 percent of par; the bonds makesemiannual payments. Common stock: 103,500 shares outstanding,selling for $63 per share; the beta is 1.1. Preferred stock: 15,500shares of 7.5 percent preferred stock outstanding, currentlyselling for $107 per share. Market: 10 percent market risk premiumand 6.5 percent risk-free rate. Assume the company's tax rate is 34percent. Find the WACC. Multiple Choice 11.74% 12.24% 12.01% 11.84%12.9%

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Consider the following information for Watson Power Co.: Debt:4,500 9 percent coupon bonds outstanding, $1,000 par value, 20years to maturity, selling for 104 percent of par; the bonds makesemiannual payments. Common stock: 103,500 shares outstanding,selling for $63 per share; the beta is 1.1. Preferred stock: 15,500shares of 7.5 percent preferred stock outstanding, currentlyselling for $107 per share. Market: 10 percent market risk premiumand 6.5 percent risk-free rate. Assume the company's tax rate is 34percent. Find the WACC. Multiple Choice 11.74% 12.24% 12.01% 11.84%12.9%