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Given the following information for Watson Power Co., find the WACC. Assume the company’s tax rate...

Given the following information for Watson Power Co., find the WACC. Assume the company’s tax rate is 21 percent. Debt: 20,000 bonds with a 6.8 percent coupon outstanding, $1,000 par value, 20 years to maturity, selling for 95 percent of par; the bonds make semiannual payments.

Common stock: 625,000 shares outstanding, selling for $54 per share; the beta is 1.20.

Preferred 45,000 shares of 2.8 percent preferred stock outstanding, currently stock: selling for $60 per share. Assume par value is $90.

Market: 7 percent market risk premium and 2.2 percent risk-free rate.

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I Am a Debl-.e- Number of bonde outstanding 220000 - face values $ 1000 Current preces 96% 1000; 950. Value of Debt: 200000 9B) Equity Number of outstanding share = 625,000 Ciflent Price a $5h per share value of tquily = 625,000x 5y = $33,750,000 - cHere is solution of your question. If doubt please discuss.All the best

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