Question
You are given the following information for Huntington Power Co. Assume the companys tax rate is 35 percent. Debt: 9,000 7 percent coupon bonds outstanding,
| You are given the following information for Huntington Power Co. Assume the companys tax rate is 35 percent. |
| Debt: | 9,000 7 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 106 percent of par; the bonds make semiannual payments. |
| Common stock: | 420,000 shares outstanding, selling for $60 per share; the beta is 1.03. |
| Market: | 9 percent market risk premium and 5 percent risk-free rate. |
| What is the company's WACC? |
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Real Estate Finance and Investments
Authors: William Brueggeman, Jeffrey Fisher
14th edition
73377333, 73377339, 978-0073377339
