Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 34 percent....

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Information on Janicek Power Co., is shown below. Assume thecompany’s tax rate is 34 percent. Required: Calculate the company'sWACC.
Debt: 8,600 7.9 percent coupon bonds outstanding, $1,000 parvalue, 24 years to maturity, selling for 104.5 percent of par; thebonds make semiannual payments.
Common stock: 211,000 shares outstanding, selling for $83.10 pershare; beta is 1.16.
Preferred stock: 12,100 shares of 5.8 percent preferred stockoutstanding, currently selling for $97.90 per share.
Market: 7.05 percent market risk premium and 4.85 percentrisk-free rate.

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Firms Market Value Capital Structure Capital Calculation Market Value Capital Structure Weights Debt 8987000 27705690 03244 Preferred Stock 1184590 27705690 00428 Equity 17534100 27705690 06328 Market Value of each capital Structure Debt 8987000 8600 x 1045 Preferred Stock 1184590 12100 x 9790 Equity 17534100 211000 x 8310 See Answer

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Information on Janicek Power Co., is shown below. Assume thecompany’s tax rate is 34 percent. Required: Calculate the company'sWACC.Debt: 8,600 7.9 percent coupon bonds outstanding, $1,000 parvalue, 24 years to maturity, selling for 104.5 percent of par; thebonds make semiannual payments.Common stock: 211,000 shares outstanding, selling for $83.10 pershare; beta is 1.16.Preferred stock: 12,100 shares of 5.8 percent preferred stockoutstanding, currently selling for $97.90 per share.Market: 7.05 percent market risk premium and 4.85 percentrisk-free rate.