Finding the WACC. Consider the following information for Evenflow Power Co.,
Debt: 5,500 7.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.
Common stock: 115,500 shares outstanding, selling for $62 per share; the beta is 1.12.
Preferred stock: 19,500 shares of 7 percent preferred stock outstanding, currently selling for $104 per share.
Market: 9.5 percent market risk premium and 6 percent risk-free rate. Assume the company's tax rate is 32 percent.
Required: Find the WACC. (Do not round your intermediate calculations.)