Given the following information for Huntington Power Co., find the WACC. Assume the company's tax rate is
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Given the following information for Huntington Power Co., find the WACC. Assume the company's tax rate is 35 percent.
Debt: 10,000 5.6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 97 percent of par; the bonds make semiannual payments.
Common stock: 425,000 shares outstanding, selling for $61 per share; the beta is .95.
Market: 7 percent market risk premium and 3.8 percent risk-free rate.
CouponA coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...
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Input Area Debt Bonds outstanding 10000 Settlement date 010100 Maturity date 010125 Annual ...View the full answer
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Related Book For 
Corporate Finance
ISBN: 978-0077861759
11th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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