In the Excel template, use the “Peter WACC” tab.  Peter Park…

In the Excel template, use the “Peter WACC” tab.  Peter Parker Industries manufactures a variety of superhero weapons. The company is considering introducing a new super-charged, solar-powered, disintegration ray gun.  The company’s CFO has collected the following information about the company for WACC calculation:  The company has a Beta of 1.2.  The risk free rate is 2.5% and the market risk premium is 8.5%.  The company has 100,000 shares outstanding with a current price of $8.50.  The company also has 10,000 shares of preferred stock outstanding with a dividend rate of 5.5% and a par value of $50.  It is currently trading for $45. The company’s cost of debt is 4.0%, and the 3,000 bonds with a par value of $1,000 that are currently trading for 100.5%.  The company’s tax rate is 21%. What is PP’s WACC?  Format:  XX.XX% with no leading 0’s.