Question
You are given the following information for Cleen Power Co. Assume the company's tax rate is 30 percent. Debt:6,000 6.1 percent coupon bonds outstanding, $1,000
You are given the following information for Cleen Power Co. Assume the company's tax rate is 30 percent.
Debt:6,000 6.1 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:330,000 shares outstanding, selling for $51 per share; the beta is 1.07.Market:6 percent market risk premium and 4.1 percent risk-free rate.
What is the company's WACC?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
