Find what is the company wacc for huntington power co

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You are given the following information for Huntington Power Co. Assume the company's tax rate is 22 percent.

Debt: 23,000 5.1 percent coupon bonds outstanding, $2,000 par value, 22 years to maturity, selling for 108 percent of par; the bonds make semiannual payments.

Common stock: 435,000 shares outstanding, selling for $69 per share; the beta is .94. Market:8 percent market risk premium and 3.4 percent risk-free rate.

Problem 1: What is the company's WACC?

Reference no: EM132952476

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