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Problem 13-13 Finding the WACC Information on Huntington Power Co. is shown below. Assume the company's tax rate is 34 percent. Debt: 4,500 9 percent
Problem 13-13 Finding the WACC
Information on Huntington Power Co. is shown below. Assume the company's tax rate is 34 percent. Debt: 4,500 9 percent coupon bonds outstanding, $1,000 par value, 18 years to maturity, selling for 102 percent of par; the bonds make semiannual payments. Common stock: 103,500 shares outstanding, selling for $63 per share; the beta is 1.13. Market: 10 percent market risk premium and 8 percent risk-free rate.
Required: Calculate the WACC
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