Question
Help! You are given the following information for Cleen Power Co. Assume the company's tax rate is 40 percent. Debt:5,000 6.6 percent coupon bonds outstanding,
Help!
You are given the following information for Cleen Power Co. Assume the company's tax rate is 40 percent.
Debt:5,000 6.6 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 109 percent of par; the bonds make semiannual payments.
Common stock:380,000 shares outstanding, selling for $56 per share; the beta is 1.12.Market:5 percent market risk premium and 4.6 percent risk-free rate.
What is the company's WACC?
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
