Finding the WACC. Given the following information for Janicek Power Co., find the WACC. Assume the company"s tax rate is 35 percent.
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Debt
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6,5008.5 percent coupon bonds outstanding. SI,000 par value. 25 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
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Common stock:
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150,000 shares outstanding, selling for .578 per share; beta is US.
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Preferred stock:
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10,000 shares of 6.25 percent preferred stock outstanding, currently selling for S80 per share.
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Market:
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8 percent market risk premium and 5.25 percent risk-free rate
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