5. Finding the WACC Given the following information for Huntington Power Co., find the WACC. Assume the company's tax rate is 35 percent. [Hint: Market Risk Premium E(R) -RE] Debt: 10,000 5.6 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, Preferred stock: Common stock: Market Info: selling for 97 percent of par; the bonds make semiannual payments. 125,000 shares with a $1.2 dividend paying preferred stock, current price of $79. 425,000 shares outstanding, selling for $61 per share; the beta is .95. 7 percent market risk premium and 3.8 percent risk-free rate