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You are given the following information for Huntington Power Co. Assume the company's tax rate is 35 percent. Debt: 6,000 6.7 percent coupon bonds outstanding,
You are given the following information for Huntington Power Co. Assume the company's tax rate is 35 percent. Debt: 6,000 6.7 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 390,000 shares outstanding, selling for $57 per share; the beta is 1.13. Market: 6 percent market risk premium and 4.7 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
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