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Given the following information for Huntington Power Co . , find the WACC. Assume the company s tax rate is 2 1 percent. Debt: 2

Given the following information for Huntington Power Co., find the WACC. Assume the companys tax rate is 21 percent.
Debt: 20,0005.1 percent coupon bonds outstanding, $2,000 par value, 20 years to maturity, selling for 105 percent of par, the bonds make semiannual payments
Common Stock: 900,000 shares outstanding, selling for $77 per share; the beta is .95.
Market: 7 percent market risk premium and 3.5 percent risk-free rate

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