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You are given the following information for Tara Ita Power Co. Assume the companys tax rate is 24 percent. Debt: 8,000 6.3 percent coupon bonds
You are given the following information for Tara Ita Power Co. Assume the companys tax rate is 24 percent.
Debt: 8,000 6.3 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.
Common stock: 350,000 shares outstanding, selling for $53 per share; the beta is 1.09.
Market: 10 percent market risk premium and 4.3 percent risk-free rate.
What is the company's WACC?
How do I enter this into excel?
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