Question: Please answer with step by step hand written work. NO EXCEL SPREAD! ANSWER: 6.27% 11. Finding the WACC Given the following information for Huntington Power

Please answer with step by step hand written work. NO EXCEL

Please answer with step by step hand written work. NO EXCEL SPREAD!

ANSWER: 6.27%

11. Finding the WACC Given the following information for Huntington Power Co., find the WACC. Assume the company's tax rate is 21 percent. Debt: 17,000 4.9 percent coupon bonds outstanding, $2,000 par value, 20 years to maturity, selling for 105 percent of par; the bonds make semiannual payments. 425,000 shares outstanding, selling for $67 per share; the beta is .88. 7 percent market risk premium and 3.5 percent risk-free rate. Common stock: Market

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