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Information on Janicek Power Co., is shown below. Assume the company's tax rate is 35%. Debt:...

Information on Janicek Power Co., is shown below. Assume the company's tax rate is 35%.

Debt: 8,500, 7.2% coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 118% of par; the bonds make semiannual payments.

Common stock: 225,000 shares outstanding, selling for $87 per share; beta is 1.15.

Preferred stock: 15,000 shares of 4.8% preferred stock outstanding, currently selling for $98 per share.

Market: 7% market risk premium and 3.1% risk-free rate.

What is the Weighted Average Cost of Capital (WACC)?

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