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Please show all worked used to obtain answer. You are given the following information for Huntington Power Co. Assume the company's tax rate is 30
Please show all worked used to obtain answer.
You are given the following information for Huntington Power Co. Assume the company's tax rate is 30 percent Debt: 6,000 7.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par, the bonds make annual payments. Common stock: 510,000 shares outstanding, selling for $69 per share; the beta is 1.12. Market: 10 percent market risk premium and 5.9 percent risk free rate. What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).) WACC %Step by Step Solution
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