Consider the following information for Evenflow Power Co., Debt: 5,000 8 percent coupon bonds outstanding, $1,000 par value, 17 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 110,000 shares outstanding, selling for $60 per share; the beta is 1.1. Preferred stock: 14,000 shares of 7 percent preferred stock outstanding, currently selling for $104 per share. Market: 9 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.) rev: 09_20_2012 Multiple Choice 10.85% 11.68% 10.73% 10.63% 11.13%
Consider the following information for Evenflow Power Co., Debt: 5,000 8 percent coupon bonds outstanding, $1,000...
Consider the following information for Evenflow Power Co., Debt: 6,000 5.5 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 144,000 shares outstanding, selling for $60 per share; the beta is 1.06. Preferred stock: 21,500 shares of 4.5 percent preferred stock outstanding, currently selling for $104 per share. Market: 7 percent market risk premium and 3.5 percent risk-free rate. Assume the company's tax rate is...
Consider the following information for Evenflow Power Co 2,500 8 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 103 percent of par, the bonds make semiannual payments 57,500 shares outstanding, selling for $59 per share; the beta Is 1.19 8,000 shares of 7.5 percent preferred stock outstanding, currently selling for $105 per share. 9 percent market risk premlum and 7.5 percent risk-free rate. Debt Common stock: Preferred stock Market Assume the company's tax rate is...
Consider the following information for Evenflow Power Co., Debt: 3,000 6.5 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 75,000 shares outstanding, selling for $62 per share; the beta is 1.05. Preferred stock: 9,000 shares of 5.5 percent preferred stock outstanding, currently selling for $105 per share. Market: 8 percent market risk premium and 4.5 percent risk-free rate. Assume the company's tax...
Consider the following information for Evenflow Power Co., Debt: 4,500 5.5 percent APR coupon bonds outstanding, $1,000 par value, 23 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 112,500 shares outstanding, selling for $64 per share; the beta is 1.08. Preferred stock: 13,000 shares of 5 percent preferred stock outstanding (note: take this percentage and convert it into decimal format, then multiply times 100 to find the preferred dividend), currently selling for...
Show calculations please Consider the following information for Evenflow Power Co. 3,500 7 percent coupon bonds outstanding, $1,000 par value, 21 years to maturity, selling for 102 percent of par, the bonds make semiannual payments. 77000 shares outstanding, selling for $60 per share; the beta is 108 Debt Common stock Preferred stock 10.500 hares of o.s percent preferred stock outstanding currently selling for $103 per share. 8.5 percent market risk premium and 6 percent risk-free rate Market Assume the company's...
Consider the following information for Evenflow Power Co., Debt: Common stock: Preferred stock: 4,000 8 percent APR coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. 84,000 shares outstanding, selling for $63 per share; the beta is 1.14. 12,000 shares of 7.5 percent preferred stock outstanding (note: take this percentage and convert it into decimal format, then multiply times 100 to find the preferred dividend), currently selling for...
Consider the following information for Watson Power Co.: Debt: 4,500 8 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 112,500 shares outstanding, selling for $63 per share; the beta is 1.15. Preferred stock: 13,500 shares of 7 percent preferred stock outstanding, currently selling for $106 per share. Market: 10 percent market risk premium and 6 percent risk-free rate. Assume the company's tax rate is...
ou are looking at the following information: Debt: 5,500 9 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 126,500 shares outstanding, selling for $63 per share; the beta is 1.12. Preferred stock: 18,500 shares of 7.5 percent preferred stock (review my Ch.8 slide 43: what does "...% preferred stock" phrase mean?) outstanding, currently selling for $105 per share. Market: 10.5 percent market risk...
You are looking at the following information: Debt: 5,000 6.5 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: 105,000 shares outstanding, selling for $64 per share; the beta is 1.14. Preferred stock: 14,500 shares of 5.5 percent preferred stock (review my Ch.8 slide 43: what does "...% preferred stock" phrase mean?) outstanding, currently selling for $104 per share. Market: 8 percent market risk...
Consider the following information for Evenflow Power Co., Debt: 3,500 8 percent coupon bonds outstanding, $1,000 par value, 22 years to maturity,selling for 102 percent of par; the bonds make semiannual payments. Common stock: 84,000 shares outstanding, selling for $57 per share; the beta is 1.18. Preferred stock: 11,500 shares of 7 percent preferred stock outstanding (note: multiply this percentage in decimal format times 100 to get the dividend), currently selling for $105 per share. Market: 8.5 percent market risk...