FINANCE-Information on Janicek Power Co., is shown below.

QUESTION

Information on Janicek Power Co., is shown below. Assume the company’s tax rate is 40 percent.Debt:9,900 9.4 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 97 percent of par; the bonds make semiannual payments. Common stock:224,000 shares outstanding, selling for $84.40 per share; beta is 1.29. Preferred stock:13,400 shares of 5.95 percent preferred stock outstanding, currently selling for $96.60 per share. Market:7.2 percent market risk premium and 5 percent risk-free rate.Required:Calculate the company’s WACC.

ANSWER:

REQUEST HELP FROM A TUTOR