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You are given the following information for Huntington Power Co. Assume the companys tax rate is 23 percent. Debt: 20,000 4.8 percent coupon bonds outstanding,
| You are given the following information for Huntington Power Co. Assume the companys tax rate is 23 percent. |
| Debt: | 20,000 4.8 percent coupon bonds outstanding, $2,000 par value, 23 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. |
| Common stock: | 420,000 shares outstanding, selling for $66 per share; the beta is .91. |
| Market: | 8 percent market risk premium and 3.1 percent risk-free rate. |
| What is the company's WACC? |
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Get Rich With Dividends
Authors: Marc Lichtenfeld
3rd Edition
1119985552, 978-1119985556
