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Given the following information for Huntington Power CO., find the WACC. Assume the company's tax rate is 35 percent. DEBT: 10,000 5.6 percent coupond bonds
Given the following information for Huntington Power CO., find the WACC. Assume the company's tax rate is 35 percent.
DEBT: 10,000 5.6 percent coupond bonds outstanding, $1,000 par value, 25 yeras to maturity, selling for 97 percent of par; the bonds make semiannual payments.
Common Stock: 425,000 shares outstanding selling for $61 per share; the beta is .95.
Market: 7 percent market risk permium and 3.8 percent risk free-rate.
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