Question
You are given the following information for Huntington Power Co. Assume the companys tax rate is 35 percent. Debt: 6,000 7.3 percent coupon bonds outstanding,
| You are given the following information for Huntington Power Co. Assume the companys tax rate is 35 percent. |
| Debt: | 6,000 7.3 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 109 percent of par; the bonds make semiannual payments. |
| Common stock: | 450,000 shares outstanding, selling for $63 per share; the beta is 1.06. |
| Market: | 12 percent market risk premium and 5.3 percent risk-free rate. |
What is the Company's WACC?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
