Question
Finding the Weighted Average Cost of Capital. You are given the following information for Huntington Power Co., find the WACC. Assume the companys tax rate
| Finding the Weighted Average Cost of Capital. You are given the following information for Huntington Power Co., find the WACC. Assume the companys tax rate is 34 percent. | |
| Debt: | 4,000 8 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. |
| Common stock: | 188,000 shares outstanding, selling for $52 per share; the beta is 1.2. |
| Market: | 9 percent market risk premium and 7 percent risk-free rate. |
| What is the company's WACC in percentage? |
Answer:
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Handbook Of Safeguarding Global Financial Stability Political Social Cultural And Economic Theories And Models
Authors: Gerard Caprio
1st Edition
0123978750, 0123978785, 9780123978752, 9780123978783
