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You are given the following information for Huntington Power Co. Assume the company's tax rate is 30 percent. Debt: 6,000 7.9 percent coupon bonds outstanding,
You are given the following information for Huntington Power Co. Assume the company's tax rate is 30 percent. Debt: 6,000 7.9 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 108 percent of par; the bonds make semiannual payments. 510,000 shares outstanding, selling for $69 per share; the beta is 1.12. 10 percent market risk premium and 5.9 percent risk-free rate. Common stock: Market: 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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