You are given the following information for Lightning Power Co. Assume the company’s tax rate is 30 percent.
Debt: 6,000 6.1 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock: 330,000 shares outstanding, selling for $51 per share; the beta is 1.07.
Preferred stock: 11,000 shares of 4 percent preferred stock outstanding, currently selling for $71 per share.
Market: 6 percent market risk premium and 4.10 percent risk-free rate.
WACC = _____%
You are given the following information for Lightning Power Co. Assume the company’s tax rate is 30 percent.
No comments:
Post a Comment