$(25$ points$)$ Given the following information for Huntington Power Co$.$ find

the Weighted Average cost of Capital $($WACC$).$ Assume the company's tax

rate is $35$ percent.

Debt: $,4,0005$ percent coupon bonds outstanding, $$1000$ par value, $25$

years to maturity, selling for $106$ percent of par; the bonds make

semiannual payments.

Common Stock: $175,000$ shares outstanding, selling for $$68$ per share; the

beta is $1\mathrm{.}20$

Market: $,6$ percent market risk premium and $4$ percent risk$-$free rate.