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Consider the following information for Evenflow Power Co.,      Debt: 5,500 7.5 percent coupon bonds outstanding,...

Consider the following information for Evenflow Power Co.,

  

  Debt: 5,500 7.5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 102 percent of par; the bonds make semiannual payments.
  Common stock: 126,500 shares outstanding, selling for $62 per share; the beta is 1.05.
  Preferred stock: 17,000 shares of 7 percent preferred stock outstanding, currently selling for $103 per share.
  Market: 9 percent market risk premium and 7 percent risk-free rate.

  

Assume the company's tax rate is 34 percent.

  

Required:

  

Find the WACC. (Do not round your intermediate calculations.)

A.11.05%

B.10.95%

C.11.97%

D.11.13%

E.11.45%

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