Given the following information for Huntington Power, find the WACC. Assume the companys tax rate is 28
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Given the following information for Huntington Power, find the WACC.
Assume the company’s tax rate is 28 per cent.
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Debt: Equity: Market: 40,000 7 per cent coupon bonds outstanding, 100 par value, 20 years to maturity, selling for 103 per cent of par; the bonds make semi-annual payments. 90,000 shares outstanding, selling for 57 per share; the beta is 1.10. 8 per cent market risk premium and 6 per cent risk-free rate.
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Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
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