You are given the following information for Huntington Power Co. Assume the company’s tax rate is 30 percent.

Debt:	6,000 6.1 percent coupon bonds outstanding, $1,000 par value, 15 years to maturity, selling for 104 percent of par; the bonds make semiannual payments.
Common stock:	330,000 shares outstanding, selling for $51 per share; the beta is 1.07.
Market:	6 percent market risk premium and 4.10 percent risk-free rate.

What is the company's WACC?

Answer rating: 100% (QA)

Step1 The first step is to calculate the value of the cost of de... View the full answer