1. Finding the WACC Given the following information for Huntington Power, find the WACC. Assume the companys...
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1. Finding the WACC Given the following information for Huntington Power, find the WACC. Assume the company’s tax rate is 28 per cent.
Debt: 40,000 7 per cent coupon bonds outstanding, £100 par value, 20 years to maturity, selling for 103 per cent of par; the bonds make semi-annual payments.
Equity: 90,000 shares outstanding, selling for £57 per share; the beta is 1.10.
Market: 8 per cent market risk premium and 6 per cent risk-free rate.
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