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

Given the following information for Lightning Power Co., find the WACC. Assume the company’s tax rate is 35 percent.

Debt: 8,000 bonds outstanding, selling for $1,060 and yield to maturity 7%

Common Stock: 310,000 shares outstanding, selling for $77 per share; the Beta is 1.15.

Preferred stock: 15,000 shares of preferred stock outstanding, currently selling for $60 per share. The preferred stock pays an annual fixed dividend of $4.

Market: 7 percent market risk premium and 4.5 percent risk-free rate.

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