Question
You are given the following information for Huntington Power Co. Assume the companys tax rate is 38 percent. Debt: 7,000 6.8 percent coupon bonds outstanding,
You are given the following information for Huntington Power Co. Assume the companys tax rate is 38 percent. Debt: 7,000 6.8 percent coupon bonds outstanding, $1,000 par value, 30 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. Common stock: 400,000 shares outstanding, selling for $58 per share; the beta is 1.14. Market: 7 percent market risk premium and 4.8 percent risk-free rate.
What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %
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