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You are given the following information for Huntington Power Company. Assume the companys tax rate is 23 percent. Debt: 28,000 4.7 percent coupon bonds outstanding,
You are given the following information for Huntington Power Company. Assume the companys tax rate is 23 percent. |
Debt: | 28,000 4.7 percent coupon bonds outstanding, $2,000 par value, 23 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. |
Common stock: | 460,000 shares outstanding, selling for $74 per share; the beta is 1.08. |
Market: | 7 percent market risk premium and 3.9 percent risk-free rate. |
What is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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