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You are given the following information for Tara Ita Power Co. Assume the companys tax rate is 25 percent. Debt: 7,000 7.4 percent coupon bonds
| You are given the following information for Tara Ita Power Co. Assume the companys tax rate is 25 percent. |
| Debt: | 7,000 7.4 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. |
| Common stock: | 460,000 shares outstanding, selling for $64 per share; the beta is 1.07. |
| Market: | 7 percent market risk premium and 5.4 percent risk-free rate. |
| What is the company's WACC? |
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The Political Economy Of Chinese Finance
Authors: J. Jay Choi , Michael R. Powers , Xiaotian Tina Zhang
1st Edition
1785609580,1785609572
