Question
You are given the following information for Cleen Power Co. Assume the company's tax rate is 40 percent. Debt: 5,000 7.8 coupon bonds outstanding, $1,000
You are given the following information for Cleen Power Co. Assume the company's tax rate is 40 percent.
Debt: 5,000 7.8 coupon bonds outstanding, $1,000 per value, 20 years to maturity, selling for 107 percent of par; the bonds make semi annual payments.
Common stock: 500,000 shares outstanding, selling for $68 per share; the beta is 1.11.
Market: 9 percent market risk premium and 5.8 percent risk-free rate.
What is the company's WACC?
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
