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You are given the following information for Huntington Power Company. Assume the company's tax rate is 15 percent. The firm has sales in the

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You are given the following information for Huntington Power Company. Assume the company's tax rate is 15 percent. The firm has sales in the most recent year of $800M, and EBIT of $300M. The firm also had capital expenditures of $120M and depreciation expense of $90M. The required level of working capital is 8% of sales. The firm expects growth of 10% per year over the next 4 years, after which the growth rate will drop to 3% per year forever Debt 2000,000 6.1 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 90 percent of par; the bonds make semiannual payments. The firm has common stock of 100 MM shares outstanding trading at $15 The risk free rate is 3.5% and the expected market return is 10.5%. The Beta of the stock is 1.3 What is the company's WACC? What is the Intrinsic Value of the Stock? If the Corp tomorrow makes a public tender offer at $ 20 / share? As a minority investor what would be your decision & why?

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