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What is the company wacc

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Question - You are given the following information for Huntington Power Co. Assume the company's tax rate is 23 percent. Debt: 32,000 5.1 percent coupon bonds outstanding, $2,000 par value, 22 years to maturity, selling for 106 percent of par; the bonds make semiannual payments.

Common stock: 480,000 shares outstanding, selling for $78 per share; the beta is 1.12.

Market: 8 percent market risk premium and 4.3 percent risk-free rate.

What is the company's WACC?

Reference no: EM133035703

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