Question
You are given the following information for Huntington Power Co. Assume the companys tax rate is 40 percent. Debt: 10,000 7.7 percent coupon bonds outstanding,
You are given the following information for Huntington Power Co. Assume the companys tax rate is 40 percent. Debt: 10,000 7.7 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 106 percent of par; the bonds make semiannual payments. Common stock: 490,000 shares outstanding, selling for $67 per share; the beta is 1.10. Market: 8 percent market risk premium and 5.7 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).) WACC %
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