Question
You are given the following information for Huntington Power Co. Assume the companys tax rate is 30 percent. Debt: 6,000 6.1 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 6.1 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 104 percent of par; the bonds make semiannual payments. |
| Common stock: | 330,000 shares outstanding, selling for $51 per share; the beta is 1.07. |
| Market: | 6 percent market risk premium and 4.10 percent risk-free rate. |
What is the company's WACC? |
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Macroeconomics
Authors: Robert J Gordon
12th edition
138014914, 978-0138014919
